The Power of Compounding: Why Every Dollar Saved Matters

Albert Einstein reportedly called compound interest "the eighth wonder of the world." When it comes to eliminating costs in your investment portfolio, the power of compounding works in your favor.

How Compounding Works

When you save money on fees or interest, that money stays in your portfolio and can grow over time. A dollar saved today doesn't just save you a dollar—it saves you that dollar plus all the returns it would have generated over time.

The Math Behind It

If you save $1,000 per year on margin interest and invest that savings at a 7% annual return: - After 10 years: $13,816 - After 20 years: $40,995 - After 30 years: $94,461

That $1,000 annual savings becomes nearly $100,000 over 30 years, just from the power of compounding.

Real-World Impact

Consider two investors with identical portfolios: - **Investor A** pays 1% more in fees and interest annually - **Investor B** eliminates those costs

Over 30 years, Investor B could have 20-30% more wealth, simply by eliminating unnecessary costs.

Taking Action

Every cost you eliminate compounds over time. Whether it's: - Reducing margin interest rates - Eliminating account fees - Choosing lower-cost investment options - Negotiating better rates

Each dollar saved today is worth exponentially more in the future. Start eliminating costs now, and let the power of compounding work in your favor.