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                <h2>Compounding your profits</h2>
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                        In simple terms, compound interest means that you begin to earn interest on the interest you receive, which multiplies your money at an accelerating rate.</p>
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                        In other words, if you have $500 and earn 10% in interest, you have $550. Then, if you earn 10% of interest on that, you end up with $605. And so on, until eventually, your original $500 is eclipsed by the amount of interest you have gained.
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                        This is the reason for the success of many top investors. Anyone can take advantage of the benefits through a disciplined investing program.
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                        Three Elements That Determine Your Compound Interest Returns Three factors will influence the rate at which your money compounds. These are:
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                        <h3>The interest rate</h3>
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                            The interest rate you earn on your investment, or the profit you earn. If you are investing in stocks, this would be your total profit from capital gains and dividends.
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                        <h3>Time left to grow.</h3>
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                            The more time you give your money to build upon itself, the more it compounds.
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                        <h3>The tax rate</h3>
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                            The tax rate, and when you have to pay taxes on your interest. You will end up with far more money if you don’t have to pay taxes at all, or until the end of the compounding period rather than at the end of each year. This is why accounts such as the traditional IRA, Roth IRA, 401(k), SEP-IRA, and other tax-deferred IRAs are so important.
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