FountainIcon173x227FOUNTAIN STRATEGIES LLC is an independent, fee-only firm that offers financial planning and investment management services with equal vigor, to our clients. Anticipate opportunity.

Double Vision

2014.JulyEnvision thousands of M&M’s and an empty mayonnaise jar sitting on your table. Drop one M&M into the jar. A minute later drop two M&M’s into the jar. A minute later drop four and a minute after that drop eight, continuing to double the number of candies you drop into the jar at one-minute intervals.

Imagine that you start this precisely at 10:00am and that the jar is completely full at precisely 12:00noon. At what time is the jar half full? *

Albert Einstein probably did not say the process of compounding interest is the strongest force in our universe. But if you can find a place that will pay you a 6% annual rate of interest, whatever cash you have put into that savings “jar” will double in value after a dozen years. It’s well worth the wait.

If you are 50 and you plan to retire at 62, a 6% rate of return on what you put into the “jar” now will double in value again by then. If you can arrange not to draw out that money until you are 74, whatever was there at 62 will have doubled again.

Simply amazing. And profound.

Are you doing this?