The snowball effect is a term used to explain how compounding interests work. Imagine if you were to roll a small snowball down a hill, it would gradually get bigger and bigger. The bigger it gets, the more snow it can take on. As it gets bigger, its ability to get bigger grows with it. The same goes for compound interest rates. For example, as the value of investment gets bigger, so does the increase you receive. Small increases over time can compound and lead to a large increase in growth. Retirement accounts and long-term investments depend on the snowball effect. Speak with a financial advisory to learn how the snowball effect can help you secure your financial future. Get your money to work for you