How Compound Interest Can Help You Retire a Millionaire -- Even on a Modest Income

Core Insights - The article emphasizes the power of compounding in building wealth, highlighting that both compound interest and compounded growth of stocks can significantly enhance retirement savings [1][6]. Group 1: Inspirational Examples - Ronald Read, a janitor and gas station attendant, exemplifies how frugal living and smart investing can lead to substantial wealth, owning at least 95 stocks and collecting $20,000 monthly in dividends before donating $6 million to local institutions [4]. Group 2: Investment Growth Projections - Investing $1,000 monthly can lead to significant wealth accumulation over time, with projections showing that after 30 years, the investment could grow to approximately $1.36 million at an 8% growth rate, $1.97 million at 10%, and nearly $2.90 million at 12% [5]. Group 3: Factors Influencing Compound Growth - The article identifies three critical factors for successful compounding: the amount invested, the growth rate of the investment, and the duration of the investment [8][10].