The power of compound interest is truly amazing.
Consider this: If you could afford to invest $15,200 this month, and you could manage an investment portfolio that achieved a return of 15% per annum for the next 30 years, then in 30 years' time your initial outlay would have grown into a whopping $1,006,419!
That's a phenomenal amount of money from a relatively small starting point and it highlights why compounding your returns is so powerful.
Understanding the concept of compound interest can not only give your children an amazing step-up in 30 years' time, it could also set you up for a much more comfortable retirement.
With February reporting season set to gear-up a notch next week, there is no time like the present to seize the day and start investing for your family's future.
Here are three stocks worth keeping an eye on this month as they could help you achieve a solid return in the years to come.
- REA Group Limited (ASX: REA) reported a strong set of results on Thursday with revenue and profit climbing 25% and 34% respectively. With many growth opportunities in REA's international business divisions there is a strong likelihood that the group can continue to post solid growth in the periods ahead, making it highly likely that REA will remain a top performing stock into the future.
- Next week on February 11, Australia's leading biotech CSL Limited (ASX: CSL) is due to report. CSL's share price has climbed 26% in the past year which suggests investors are anticipating a strong result with consensus estimates (from Thomson) suggesting growth in earnings per share (EPS) of 24% will be achieved.
- Then on 17 February, Coca-Cola Amatil Ltd (ASX: CCL) is scheduled to report its full year results. While investors appear hesitant about what to expect from this world famous branded beverage bottler – the share price is down around 16% over the past 12 months – the upcoming reporting season will be an important opportunity to assess the company's future prospects.
