“The most powerful force in the universe is compound interest.”
— Albert Einstein
The Star Wars movie series has spanned decades, with the first film being released more than 35 years ago. If you had invested $10,000 in AMCAP Fund in 1977, the year the original Star Wars premiered, you could have accumulated more than $1.1 million by December 31, 2015, with the power of active management and compounding.
Compounding means you’re earning investment returns on your investment returns. The longer your investment horizon, the more time your investments have to apply what Einstein called the most powerful force in the universe.
The Cost of Living Moves Quickly
The cost of a movie ticket and many other goods and services have increased dramatically in the past 38 years. The power of compounding can help you offset inflation with the income you’ll need in retirement.