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What investments are best for achieving strong compound interest returns?


What investments are best for achieving strong compound interest returns?

If you are looking to invest, you need to have at least a 5 year time horizon. If you don't have that long, you are really not investing. If you have that kind of time horizon, you should look at mutual funds. They are professionally managed pools of money that invest in stocks, bonds, and cash. The longer your time horizon, the greater percentage of your money should be in stocks. They come with fees, but that is what you pay for people smarter than you and I to pick the stocks and bonds for us.

Stocks for the long term are unmatched in earning potential.

"interest" is typically a gaurunteed rate of return on an investment.

CDs or "Money Market" are easy to set up, and currently offer 4-5% annual return, compounded monthly. Downside is you must keep your money in for some pre-decided term, which can anywhere from 3-12 months.

Stocks are only good if you know what you are doing.

In my opinion, without a doubt, the best form of compounding occurs in DRIP Plans.

These powerful investment plans are seldom talked about because brokers make very little money when they suggest them. Yet, they have proven to be one of the best, if not the best, long-term strategy on Wall Street.

They are perfect for small investors, as well as big investors. They are safe and allow you to not care about whether the market is going up or down. They are a must for any serious investor.

They reinvest your dividends free of charge to buy more shares, the newly acquired shares will then give you more dividends, which will in turn purchsase yet more shares.

I strongly recommend looking into it. They are great plans.

Funds Constantine , Chart in Constantine Low Risk

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