Quote from: Silverstone1111 on November 09, 2017, 06:04:23 AM

I am recently watching videos about investing and financial freedom. I usually hear people like Tony Robbins say that compound interest is such a great thing. It is a wise way to invest your money for a long period of time. I have heard it from several others as well. But I have no idea which investments give us compound interest. I was hoping if you guys know about it and I would be very happy to be educated about it. I am in my early 20s and want to make right decisions for secure and prosperous present and future. I would really appreciate your words and advises. Thanks

Compounding interest is indeed the best way to get maximum return out of your investment. But unfortunately no banks offer such investment avenue to commoners! They use simple interest formula to calculate the return which is paid at quarterly or annually directly to your savings account and not in the investment account.

However, don't get disheartened! Rather, invest in blue chip stocks for longer time. Here longer term means really long, at least 10 years! There are some good stocks in the market which pays regular dividends. Make sure to invest those dividends back into the market without spending them for enjoyment. Such kind of investments often fecth much higher return than traditional investments.