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By Doug Andrew

When I teach audiences across the country about the “Three Marvels of Wealth Accumulation,” I explain the principles the affluent have used for generations: 1. Compound interest, 2. Tax-favored accumulation, and 3. Safe, positive leverage. The first of these marvels, compound interest, can make an enormous difference in how your money grows. But it has power beyond your finances — by applying “compound interest” on your “KASH,” you can make a lasting difference on the legacy you leave behind. More about that later.

First, let’s look at how compound interest works with your money. Many people think they understand interest. They know it’s the amount that a bank or credit union pays you for the privilege of “holding” your money (which the bank then invests or puts to work). Conversely, it’s the amount of money you pay the bank for using its funds, with tools like business loans or mortgages.

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