Albert Einstein once said:
“Compound interest is the eighth wonder of the world.”
But what does compound interest mean, and how does it work?
That’s what we explain in this blog post, so you can also benefit from the power of compound interest.
Pretty straightforward: every dollar or cash flow that is generated through the yield of your investments will be reinvested instead of cashed out and that leads to an increase in your investment amount after each reinvestment.
Let’s look at an example:
If you invest 100,000 $ today in an asset that provides a 10% annual yield, you are automatically reinvesting the profits, and you don’t touch the investment for 20 years; you will have more than 730,000 $ after 20 years. Without reinvesting or the compound interest, you only will have 300,000 $
And why that? Because you take out the cash flow every month, you always get the 10% annual yield on your initial investment of 100,000 $. And that is every year 10,000 $. So, after 20 years, you have earned 20 times 10,000 $ which equals 200,000 $.
I would agree with Albert Einstein and would prefer compound interest. The example before is the best proof of that.
And by the way, with JAVLIS, you can benefit from the same mechanism. You can exponentially increase your investment over time by reinvesting your cash flow. The longer you reinvest, the higher your investment will increase.
And let me give you some information about JAVLIS in case you want to learn more. JAVLIS provides you with a passive income with a double-digit annual yield on your funds. And by double-digit, I mean around 20% annual yield at the moment. JAVLIS is using the latest blockchain technology and cryptocurrencies to generate passive income for you.
After the example above, you now also know what this means for your asset accumulation when you reinvest your returns.