The Power of Compounding
Compounding refers to the process of reinvesting the returns generated by an investment to generate even more returns over time. When your assets are allowed to compound for a longer time, the benefits to be had are greatly amplified because, in the later years, the compounding creates a more dramatic effect on the value.
For example: If you took a single penny and doubled it every day, by day 30, you would have $5,368,709.12. However, it's important to note that it's all about the power of doubling - if you asked the same question but changed the doubling time to just 27 days, you would only have $671,088.64.
(The power of compounding is one of the most valuable tools in the world of investing. By starting early, investing consistently, and choosing high-quality investments, you can take advantage of compounding to grow your assets and achieve your long-term financial goals.
We at Canadian Child Savings Plan offer a range of services that can help you take advantage of the power of compounding. Our financial and insurance services can help you identify high-quality investments, create a plan for consistent investing, and provide guidance and support as you work towards your long-term financial goals.)
(In particular, our Guaranteed Return Policy is designed to help you take advantage of the power of compounding. By starting early and investing consistently for 20 years, you will build a significant nest egg for your child. One that can be used for education, wedding expenses or any other reason you and the child may choose. Further, the child will be insured for their entire life without further cost or need to prove insurability. They will also be guaranteed to leave a legacy for their grandchildren. One that will be many times larger than the amount of money that was contributed to the plan.)