The Power of Compounding with Stars (40/40) Model

The best version of Stars (40/40) has delivered 30% annual returns over the past 14 years. Here’s how compounding works at this rate:

• 3x a 6% bond in 5 years
• 4x the S&P (12%/year) in 10 years
• 6x real estate (15%/year) in 15 years
• $1,000 → $2.6M in 30 years

Few investments match this return. Instead of paying off low-interest loans (7-10%), consider gradually increasing your TQQQ allocation-your future self will thank you.