I can’t lie: I’m not immune to the short squeeze madness or the cryptomania or the Reddit-fueled assault on Robinhood. It’s very easy to be caught in the news, questioning your long-term plan and wondering whether your commitment to index funds is entirely misguided.
These moments, while exciting, are also great opportunities to remind yourself of the basics when it comes to long-term investing. One of the core tenets surrounding good financial planning is to maintain a long-term focus, one in which dividend reinvestment is the key to unlocking an effortless compounding effect. In this article, we’ll look at a chart that shows what dividend reinvestment is and how it can change your life.