Albert Einstein famously said that compound interest is the 8th wonder of the world, but its power is difficult to grasp. So, to give a simple visual demonstration, I'll double the amount of "c"s each time one is used in just three short sentences below. Imagine that each "c" is one cent deposited in a compounding savings account:
Recent research from the Filene Research Institute, a thought leader in the Credit Union Movement, has revealed that “more than half of Americans revolve on their credit balances, deflating their credit scores and depleting their savings, especially when they prolong their indebtedness by making smaller monthly payments than they could.”
Laddering your certificates is an attractive investment strategy for new and seasoned investors looking to diversify their portfolios. With laddering, you will be able to decide how you want to split up your investments and whether to reinvest each time a certificate matures. By opening multiple certificates with staggered maturity dates, you have the potential to earn better returns while keeping your money safe.
I look forward to the beginning of each new year as an opportunity to set self-improvement goals. For many of us, New Year's resolutions are focused on health but it’s just as important to evaluate your financial wellness and resolve to set some long- and short-term goals. Fortunately, January is Financial Wellness month, which was created to remind us to pay closer attention to our financial well-being after the hustle, bustle, and high spending that comes with the holiday season.
Fact: Credit unions charge fewer fees and have better loan and deposit rates, on average, than banks.