Compound Growth Mastery
The Foundation of Tax-Free Wealth
Before you can understand why the 401K is a trap, you must understand two principles: Compound Growth and Leverage. Without these, nothing else makes sense.
The Power of Exponential Growth
The $5.3 Million Penny
Would you rather have $1 million today, or a penny that doubles every day for 30 days?
Most people take the million. They cost themselves $4.3 million.
- Day 1$0.01
- Day 10$5.12
- Day 20$5,242.88
- Day 30$5,368,709.12
That's compound growth. It starts slow, then explodes. But only if you don't interrupt it.
Warren Buffett's Reality
99% of Warren Buffett's wealth came AFTER age 50.
He never interrupted the compounding.
Life-Changing Math
4 Compound Interest Miracles
The Coffee Fortune
A $6 daily habit invested at 10% becomes $1.06 Million over 40 years.
The Birthday Gift
A single $5,000 investment at birth becomes $1.4 Million by age 65.
The 10-Year Head Start
Starting at 25 instead of 35 creates a $2 Million difference at retirement.
Rule of 72
Divide 72 by your return rate to know how fast your money doubles.
The Wealth Killer
Tax Drag: The Silent Destroyer
Every year, taxes take a bite out of your growth. It doesn't just cost you money—it costs you decades of compounding.
Taxes don't just take money. They steal TIME.
Tax drag can add 9 years to your working life.
The Second Principle
Leverage & Infinite Banking
Compound growth is how money multiplies. Leverage is how you accelerate it.
With a properly structured Section 7702 policy, you can:
- Borrow against your cash value
- Your cash value keeps growing as if you never touched it
- Use the loan for other investments (real estate, business)
- Recapture the interest yourself
This is called Velocity of Money. Making your money work in two places at once.
Traditional Banking
Bank pays you 0.5%
You pay bank 7%
You Lose
Infinite Banking
Policy grows at 5-6%
You borrow at 4%
You Win
Deep Dives
Explore Foundation Topics
Master the fundamentals of wealth building with these in-depth guides.
Compound Interest Fundamentals
The foundation of exponential growth
Velocity of Money
Use the same dollar multiple times
Policy Loan Leverage
Access capital without interruption
Arbitrage Explained
Profit from interest rate spreads
Using Other People's Money
OPM leverage strategies
The Cost of Waiting
Procrastination penalty math
Exponential Growth Explained
Why brains fail at compound math
Interruption Penalty
True cost of early withdrawals
Compounding Frequency
Daily vs monthly vs annual
Small Differences, Huge Gaps
Why 1% changes everything
Contribution Timing
Lump sum vs dollar-cost averaging
Starting Points by Age
Where you should be
Growth vs Income Investing
When each approach wins
Wealth Building Framework
Complete 5-phase guide
Tax Drag Explained
The hidden cost of taxable accounts
Questions
Fundamentals Q&A
Understanding these principles is the difference between working for money and making money work for you.
Stop the Tax Drag
In a strategy session, we'll calculate your current tax drag and show you how tax-free compounding changes your retirement timeline.