The Power of Compound Interest: Why Starting Now Matters (For You and the Next Generation)

You’ve likely heard the phrase “compound interest” tossed around in financial circles—but let me tell you something:

It’s not just a technical term.
It’s a powerful wealth-building force—and one of the greatest gifts you can give yourself or your children and grandchildren.

And the secret behind it?
Time.

What Is Compound Interest?

Compound interest is the concept of earning interest on your interest. It’s money that builds on itself—like a snowball gaining speed and size as it rolls downhill.

In simple terms:

• You invest money.
• That money earns interest.
• Then that interest earns interest.
• And it just keeps going.

The earlier you start, the longer that snowball has to grow.

A Real Example: A Grandparent’s Gift

Let’s say you’re a grandparent. You open a Roth IRA for your 16-year-old granddaughter who just got her first job. She earns $4,000 for the summer, and you help her contribute $2,000 of it into the account.

She never adds another penny.
That $2,000, earning 8% annually, turns into over $93,000 by the time she’s 65.
One summer job. One smart move. A lifetime of growth.

Now imagine if she added to it consistently. You’ve not just gifted her money—you’ve gifted her time and opportunity.

For You: It’s Not Too Late

Maybe you’re reading this thinking,
“Well, that’s great for someone just starting… but I’m already in my 40s, 50s, or beyond.”

That’s okay. You still have the power of compounding—just with a slightly different strategy.

I recently worked with a woman in her early 50s who hadn’t saved much. She was nervous she was behind. But once we looked at her options—maximizing her 401(k), opening a Roth IRA, investing intentionally—we created a plan that’s now generating real growth.

In just 18 months, she went from “overwhelmed” to “on track.”

Because compound interest doesn’t require perfection. It just requires a start.

Questions to Ask Yourself:

• Am I saving and investing consistently right now?
• What could compound interest do with even small monthly contributions?
• Could I help my child or grandchild get a head start—even with a modest amount?

Take the Next Step

Whether you’re thinking about your future—or helping the next generation prepare for theirs—compound interest is your best friend.

Let’s talk about how to make it work for you (and those you love).
Schedule your Portfolio Power Hour here:
 www.calendly.com/ashlinewcomb

You don’t have to be wealthy to build wealth.
You just have to start.

Investment advisory services offered through Kingsview Wealth Management, LLC (“KWM”), an SEC Registered Investment Adviser. Insurance products and services are offered and sold through Kingsview Trust and Insurance Services (“KTI”), by individually licensed and appointed insurance agents. KWM and KTI are subsidiaries of Kingsview Partners. KWM is an investment adviser registered with the Securities and Exchange Commission (“SEC”). Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed.