Can “the 8th Wonder of the World” work against you?
Albert Einstein famously said “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” And indeed compounding interest can be a VERY GOOD THING!
However, as Kim explains in this Money Myth video, costs and taxes also grow due to compounding… even when you wish they wouldn’t! She explains a problem that a client had and the solution to compounding taxes in this Money Myth video: