The power of compounding is key to building fat retirement savings accounts. Ordinary people like Ronald Read have become millionaires through compounding. By investing $1,000 monthly in stocks at varying growth rates, substantial sums can be amassed over time. Compound growth hinges on investment amount, growth rate, and time.

Even if you can’t invest $1,000 monthly now, starting with any amount can lead to significant wealth accumulation. Growth rate is crucial, with annual returns near 10% considered a good estimate. Diversifying investments and focusing on long-term growth through index funds can yield steady returns. The magic of time allows small investments to grow substantially.

For those behind on retirement savings, maximizing Social Security benefits can provide a significant boost. Learning key strategies could increase annual income by up to $23,760. Understanding compound interest and diligence in investing are crucial to achieving financial success. JPMorgan Chase is an advertising partner of Motley Fool Money.

Read more at Yahoo Finance: How Compound Interest Can Help You Retire a Millionaire — Even on a Modest Income