Albert Einstein was once asked to name the greatest discovery of the 20th century. Most expected him to refer to his theory of relativity, nuclear energy, or some other important development.

His answer, though: Compound interest.  Was he joking?

Look at these figures, (coupled with tax deferral) then you decide.

If you were to invest $10,000 at 5% tax deferred interest for 20 years, your profit from the investment would be $17,126. But if you doubled the rate of interest to 10%, how much money would you earn?

Although it would seem that doubling the rate would double the return, Einstein demonstrated that this is not the case: Increasing the rate by 100% increases the return by 369%. In other words, instead of earning $17,126 in interest, you would earn $63,281.

That’s the power of compound interest: Money doesn’t grow linearly – it grows exponentially!

Investing monthly works just as well as when investing a lump-sum.  If you invest $100 a month over 20 years tax deferred, you’ll have invested a total of $24,000. At 5%, your money would earn $17,103 in interest, but doubling the rate to 10% would once again increase your profit by 369%, just as before.

Without Tax Deferral
However, there is a big difference if you have to pay income taxes each year on the interest. Based on a 28% tax bracket, the same $10,000 at 5% interest would only be worth $20,522 and at 10% = $42,026.  Instead of ending up with $63,281 of interest at 10%, you only have $32,026.  You lose almost 50% of your profits.

If Albert Einstein was correct and the greatest discovery of the 20th century is compound interest, then the 2nd greatest discovery of the 20th century might be tax deferral. The two together are an unbeatable combination and should be a major consideration when choosing your investment vehicle.

If you want your money to grow the fastest way possible, then stop paying unnecessary income taxes. Put you money into a tax deferred vehicle.

If you would like more information about how I can specifically help you, feel free to contact me anytime.

Do you want to read a shocking discovery I’ve found while helping people with their money?  It’s the number one reason most people don’t invest more money into their retirement and savings.  Here it is:

Most people don’t feel they have enough money to invest.

I know, pretty shocking discovery, huh?

When helping people with their money concerns, it doesn’t take long to realize that most people, like myself, want to invest/save more, but don’t feel they have enough money to do so.  We all feel that there just isn’t enough money within our current monthly budget to survive today and save for tomorrow.

Most of us don’t feel like there is any “extra” money in our current household budget to save and invest any more than we already do.

But, here’s a question for all of us.  If we can’t find the money now, how can we ever afford to retire?  Or send our children to college?  Or do all the things we want to do in the future?

So, how can we fix this problem?  What’s the solution? 

What I found while helping people, who are just like me, is that we all waste money every month.  We sometimes pay for things we don’t really need, or we pay more than we should for things we really do need.

The solution is to eliminate those unnecessary expenses from our current household budget, find ways to reduce our debts and taxes, and then put all that money into long term savings and investments.  That may sound confusing, but it’s actually easier than you might think.  This is the same thing that I try to do in my own life.  It’s also the same strategy that I have used on many of my clients.

So what I do is help people “Find the Money.”

I help people “Find the Money” by converting wasted dollars within their current monthly budget into regular monthly savings/investing.

The best part is I found a way to do this without having to earn more money.  I simply help people use the income they have more efficiently…and it’s a lot easier than you might think.

In fact, I found in most cases, I can help the average couple save between 8% and 13% of their monthly budget.  I’m not saying this to brag, because in most cases, it’s the client(s) that finds the money.  When we first get together and talk, people usually feel that there is absolutely nothing they can do to free up some money.  However, once we get talking and asking the right questions, the couple usually starts to find solutions.  For example, one couple I met with in August – both teachers – needed to find about $500 a month in order to help pay for daycare.  When they first came in they were afraid that their only option was going to be to stop contributing to their retirement accounts.  Knowing they didn’t want to do this, they called me.  When we met, we found a great solution to their problem which freed up the amount of money they needed.  I’d like to say I did this all on my own, but the truth is, the couple said a couple things that got us all thinking, and together we found the right solution.

Sometimes it just takes sitting down with a third party to find the answers.

For many of my clients, I’m honored to say, that I am that third party.  I feel honored that many of my clients trust me enough with their financial situations that they come to me for help.

So, if you would like to get together and find ways to free up some extra money each month, please feel free to give me a call.  I’d be happy to assist you.  The solutions we come up with are simple.  Basically, all we do is two things:

1.  Find waste within your budget (unnecessary expenses) and
2. Reposition that money into smart, safe investments/saving accounts.

It really is that simple!

Check out my Testimonial Page if you’d like to see what some of my clients have said about how I’ve helped them.

Read my post on how to find quick ways to simplify your finances.

Then contact me anytime to see if I can help you “Find the Money.”