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Compounding was pointed out as a key concept that helps investors grow their wealth over time. The idea is simple: Money that earns interest earns interest itself over time. This principle makes early investments particularly powerful, leading to exponential growth over decades.
Time Horizon
Determining the time horizon for your investments is also paramount. Trogdon shared that younger investors could afford to take more risks, while those closer to retirement should approach their investments more conservatively. Understanding your investment timeframe can drastically influence your investing strategy.