Money Myth #4: Compounding is Always a Good Thing!

Can “the 8th Wonder of the World” work against you?

Money Myth video 4Albert 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:

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