Investing a $3,600 raise for one single year could do wonders for you over the course of several decades under various compounding scenarios (see table below). Historically, the 2% compound interest rate could be achieved by investing in United States Treasuries. The 10% compound interest rate could possibly be achieved by investing in index funds. The astute (and lucky investor) could achieve a 15% compound return. Now imagine if you could invest this same raise amount every year?
William Bias has been researching stocks since 1992 and has been a freelance writer since 2012. He employs a strategic business oriented approach to stock market investing.