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THE POWER OF COMPOUND INTEREST

THE POWER OF COMPOUND INTEREST

If you put aside some part of your income per month for your savings, and you invest your savings, taking advantage of the power of compound interest, you could be very rich when you reach the age of retirement.  

Building up wealth is quite easy if you are diligent, prudent and patient in handling money, compound interest has been proven to turn small consistent investment into large amount of money, though it may take a long period of time, but it guaranteed to make you very rich. 

Compound interest can be defined as interest calculated on the initial principal and also on the accumulated interest of previous periods. It simply means your interest on your initial capital, added back to your capital and reinvested again, and this is done over and over again for a long period of time for as long as you choose. Most people take the route of simple interest when investing their money, while this pays you returns in the short time, it prevents your capital from growing exponentially into a larger sum. 

WHY YOU SHOULD CHOOSE  COMPOUND INTEREST INVESTMENT 

One common mistake that people do is to keep their money or savings in the bank, mostly in the fixed deposit investment service of the bank. Money kept in the bank generates very little interest and does not amount to much even after a long period of time. Most banks don’t pay more than 3.6% interest per annum on money deposited with them, investment companies on the other hand pay higher interest rates on capital invested with them, an example is SECURE CAPITAL LIMITED that pays up to 27% ROI per month on money invested with them. 

The chart below shows two fictional investors, James and Mary. Mary keeps her savings of a year which is worth $131 in the bank at the end of the year, and she is paid interest per annum on her fixed deposit with the bank. At the end of every year she adds her savings for the year which is $131 to her money in the bank and keeps it there. While James who also saved up $131 in a year chose to invest his money with an investment company that pays his 22% monthly on his capital, he then re-invests it every month for a period of 5 years. At the end of 5 years James money had accumulated to over $21,000,000 while Mary’s money had accumulated to over $700. 

Note how the money saved up by both James and Mary increased over time when put into investment. Investing at an early age also has a lot of benefits, it helps out when paying for things like kids college fees, retirement, etc. Instead of having to save up for years to pay these bills, an investment at an early age pays for the bills later on in the future.  

Ready to invest? Visit our website www.securecapitallimited.com to choose your preferred investment plan and take advantage of the power of compound interest today.

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