Compounding is a powerhouse tool when it comes to building wealth. When you put money into an investment account, you earn a varied rate of return on the balance. If you leave your money in the account, it can grow. An RCB Bank wealth advisor can help you plan a savings strategy built for your individual lifestyle goals and needs.
Example #1: College Savings
The Jones and Smith families each have a baby and start saving $150 per month for their child’s college education. The Smith’s use an investment account to build more wealth.
Example #2: Retirement Savings
Kyle Jones and Kelly Smith put $400 per month into their retirement accounts and earn the same rate of return. Kelly started saving at age 25 while Kyle waited until he was 35 to start.