5 min

Recipes for Investing: Compound Interest x Sourdough

Published in June 2020

About This Video

Hungry to learn more about investing? Our Recipes for Investing series serves up investment concepts in easy-to-digest portions, while introducing dishes you can whip up in your kitchen just as easily.

In this episode, Christopher Kong, creator and chef of the exclusive Dearborn Supper Club private dining experience, teaches you how to make a sourdough starter while also elaborating on the power of compound interest.

See the power of compounding

Compound interest can be understood as the interest that you earn on your interest, which is in addition to the interest that you earn on your principal.

This illustration shows how much in compound interest you could potentially lose out on by holding back your investment plans, assuming a fixed rate of return of 3.25%^ compounded annually.

Make dollar cost averaging work to your advantage

^3.25% is the updated investment returns used in the Benefit Illustrations for Singapore-dollar denominated insurance Participating ("Par") policies adopted by Life Insurance Association’s (LIA) (w.e.f. 1 July 2013).

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