Jetset Magazine - issue 1, 2017

Page 76

Altitude // Estates

UNDERSTANDING COMPOUND INTEREST AND NEGATIVE INTEREST RATES BY KEN MCELROY

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JETSETMAG.COM

here is perhaps nothing more important to understand than interest rates if you are going to retire comfortably. Interest rates are one of the most integral components of the American economic system. They influence the cost of borrowing, the return on savings, and are an important component of the total yield of many investments. Moreover, certain interest rates provide insight into future economic and financial market activity. In essence, interest rates control the flow of money in the economy.


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