[LISTEN] Compound interest: a forgotten secret

Saving is something that is hopefully at the top of everyone’s New Year’s resolution list. The magic of financial growth seems to be in compound interest, and its impact in the wealth creation process.

Albert Einstein called it the eighth wonder of the world, and it has received high praise from financial gurus like Warren Buffet. Compound interest seems to be the forgotten gem in the world of finances.

Gauteng Regional head of Overberg Asset Management Werner Erasmus joins Africa in studio to chat about compound interest as a forgotten secret to success.

Compound interest is a really powerful tool but because it takes a bit of time to really kick in. People sometimes forget about it or are reluctant to keep their money invested for a long time.

Werner Erasmus, Gauteng Regional head of Overberg Asset Management

Erasmus says that compound interest is like a snowball, if you leave your money invested, and reinvest the returns you receive every year the results are exponential. He adds that the longer you reinvest the returns you receive on an annual basis, the quicker your snowball will grow.

Click on the audio below for more info…


This article first appeared on CapeTalk : [LISTEN] Compound interest: a forgotten secret


Recommended

by NEWSROOM AI
Read More
'The animation (The Grinch) is beautifully stylish and pretty' - Gayle Edmunds

'The animation (The Grinch) is beautifully stylish and pretty' - Gayle Edmunds

In the movie review, film critic Gayle Edmunds shares her views of Benedict Cumberbatch's performance is 'The Grinch' movie.

Film critic explains why everybody wants to see the film 'Bohemian Rhapsody'

Film critic explains why everybody wants to see the film 'Bohemian Rhapsody'

In the movie review, film critic Gayle Edmunds gives us the scoop about the 'Bohemian Rhapsody' movie.

Certified Financial Planner shares his 30/30/40 rule for financial planning

Certified Financial Planner shares his 30/30/40 rule for financial planning

Certified Financial Planner Paul Roelofse says that following his formula will ensure financial independence and relief debt free.

Love cars? Here’s how to have fun, and keep your finances intact nonetheless

Love cars? Here’s how to have fun, and keep your finances intact nonetheless

Warren Ingram helps a listener who loves her cars, and asks how to combine a good lifestyle with proper financial planning.

Tips on how to save a bit of cash in 2018

Tips on how to save a bit of cash in 2018

Financial Educator at Just One Lap, Simon Brown advises how to start saving a bit of money for those rainy days.

What Cyril Ramaphosa means for your retirement fund and/or other investments

What Cyril Ramaphosa means for your retirement fund and/or other investments

The Money Show’s Bruce Whitfield interviews Galileo Capital Personal Financial Advisor Warren Ingram.

Popular articles
Popular shoe brand Vans ask Ackermans to remove "knock-offs" from shelves

Popular shoe brand Vans ask Ackermans to remove "knock-offs" from shelves

Vans' brand manager says although this is a recurring problem its main concern is that this particular "fake" is a very close copy.

 'Having a senior official call Lindiwe Sisulu a prostitute is undiplomatic'

'Having a senior official call Lindiwe Sisulu a prostitute is undiplomatic'

Mail & Guardian Africa editor Simon Allison says its undiplomatic for a Rwandan official to call Sisulu names.

Evidence shows how ANC’s Danny Msiza allegedly benefited from VBS looting

Evidence shows how ANC’s Danny Msiza allegedly benefited from VBS looting

Msiza has now resigned from his position as ANC Limpopo treasurer general.

[Watch the latest adverts] Do you agree? Chicken Licken is the boss of Nando’s!

[Watch the latest adverts] Do you agree? Chicken Licken is the boss of Nando’s!

Chicken Licken’s latest ad flame-grills the most recent one by Nando’s, says Nicholas Kühne of Wunderbrand.

#CyrilOn702: 'I can assure your listeners that Thursday is confirmed'

#CyrilOn702: 'I can assure your listeners that Thursday is confirmed'

Head of Presidency Zizi Kodwa confirms Xolani Gwala's exclusive interview with President Cyril Ramaphosa will go ahead.

'Evidence is solid. Poor people’s money was used illegally. Shivambu benefitted'

'Evidence is solid. Poor people’s money was used illegally. Shivambu benefitted'

Ray White interviews Pauli van Wyk, an investigative journalist with Scorpio at Daily Maverick.