Compounding Decoded

Compounding is not just "interest on interest." It is a snowball: your returns earn returns, which earn returns of their own. The strange part is the timing — your money does most of its growing at the very end.

In a steady 10% account, a balance doubles about every seven years. So the final stretch, working on the biggest pile, adds more dollars than all the early years combined. That is why a late start hurts so much: you skip the decades that pay the most. The math quietly rewards patience over talent, timing, or any hot tip from a coworker.