At Fibonaii Group Inc., we believe in empowering our clients to make informed financial decisions that unlock the true potential of their investments. One of the most powerful tools in wealth creation is compound interest, we specialize in helping you harness this power through private mortgage investments and other tailored strategies.
In this blog, we’ll explore how compounding works, why it’s a game-changer for investors, and how FIG Investment Solutions can help you achieve your financial goals.

What is Compound Interest?

Compound interest is often referred to as the “eighth wonder of the world” because of its ability to grow wealth exponentially over time. Unlike simple interest, which only earns returns on the principal amount, compound interest allows you to earn returns on both the principal and the accumulated interest.

For example, if you invest $100,000 for an year at 5% rate of return then you get $105,000 in the first year. In the second year, you earn interest not just on the original $100,000, but also on the $100,000 and the $5,000 in interest from the first year. Over time, this snowball effect can lead to significant wealth accumulation.

The Power of Compounding in Action

To demonstrate the power of compounding, let’s compare four investment scenarios over a 20-year period. Each scenario starts with a $100,000 investment, but the returns vary based on the strategy:
3% GIC Investment: A low-risk, steady-growth option.
12% Private Mortgage Investment: A high-return strategy offered by FIG Investment Solutions.
5% Real Estate Growth with Periodic Adjustments: A moderate-growth option with market fluctuations.
13% Stock Investment with Volatility: A high-risk, high-reward strategy.
Here’s how each scenario performs over 20 years:

Year	3% GIC Investment	12% Private Mortgage Investment	5% Real Estate Growth	13% Stock Investment
0	$100,000	$100,000	$100,000	$100,000
5	$115,927	$176,234	$127,628	$144,289
10	$134,392	$310,585	$166,026	$197,382
15	$155,797	$547,357	$215,892	$269,859
20	$180,611	$964,629	$280,724	$835,748

Key Takeaways

Private Mortgage Investments Outperform: With a 12% annual return, private mortgage investments grow your $100,000 to nearly $1 million in 20 years. This is the power of compounding at work!

Volatility Matters: While the stock investment offers high returns, its periodic drops can make it a riskier option. Private mortgage investments, on the other hand, provide consistent, stable growth.

Time is Your Greatest Ally: The longer you stay invested, the more compounding works in your favor. Even a 3% GIC investment nearly doubles your money over 20 years.

Why Choose FIG Investment Solutions?

At FIG Investment Solutions, we specialize in private mortgage investments that offer:
High Returns: Earn up to 15% annually, far surpassing traditional savings accounts or GICs.
Stability: Unlike volatile stock markets, private mortgages are secured by real estate, providing a reliable income stream.
Expert Guidance: Our team at Fibonaii Group Inc. ensures your investments are tailored to your financial goals and risk tolerance.

Start Your Journey with FIG Investment Solutions

The power of compounding is undeniable, but it requires the right strategy and a trusted partner. Whether you’re a seasoned investor or just starting we can help you unlock the full potential of your wealth.
Ready to take the first step? Contact us today to learn more about our private mortgage investment opportunities and how we can help you achieve financial freedom.

About Fibonaii Group Inc.

Fibonaii Group Inc. is a leading financial services company with inhouse mortgagee administration services dedicated to helping clients grow their wealth through innovative investment solutions.