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ISSUE 119                                                                               SEPTEMBER 2025
            THE MAGIC MULTIPLIER



                           HOW COMPOUNDING BUILDS

                    WEALTH FOR EVERY AUSTRALIAN




















                                                                                                                       depositphotos.com







                                    BY WEALTH ADVISER

                                    Introduction: Why Compounding Is the One Investing Principle Everyone
                                    Must Know
        INSIDE                      he who doesn’t, pays it.” These words, often attributed to Einstein, echo across generations
                                       “Compound interest is the eighth wonder of the world. He who understands it, earns it;

        1   The Magic Multiplier: How   for a reason. More than any market “secret,” compounding is the relentless engine that turns
           Compounding Builds Wealth for   early and regular savings into long-term prosperity. And yet, research shows that a surpris-
           Every Australian         ing number of Australians—especially young people—don’t fully grasp just how powerful
        4   Navigating Resilient    this force is. Compound interest is an investor’s best friend but can be a borrower’s worst
           Retirement: Beyond the 4%   nightmare. For those who understand and use it, compounding becomes the greatest ally on
           Rule for Australian Investors  the road to wealth.
        7   Resetting the Dream:
           Australia’s Generational   Understanding Compound Interest: The Math and the Magic
           Housing Divide and What     At its core, compounding is delightfully simple: it’s the notion of earning returns not
           Comes Next
                                    only on the money you invest, but also on the returns previously generated. It’s interest on
        9  Q&A: Ask a Question      interest, growth on growth—a virtuous cycle where your wealth can accelerate over time,

         BEFORE YOU GET STARTED
            This Wealth Adviser publication is published by Wealth Today Pty Ltd   Information in this document is no substitute for professional financial
         (AFSL 340289), Sentry Advice Pty Ltd (AFSL 227748), Synchron Advice   advice.
         Pty Ltd (AFSL 243313) and Millennium3 Financial Services Pty Ltd (AFSL   We encourage you to seek professional financial advice before making any
         244252) and contains general and factual information only.  investment or financial decisions.
           Before acting on any information contained herein you should consider if   In any circumstance, before investing in any financial product you should
         it is suitable for you. You should also consider consulting a suitably qualified   obtain and read a Product Disclosure Statement and consider whether it is
         financial, tax and/or legal adviser.                   appropriate for your objectives, situation and needs.
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