Most investors tend to make big mistakes that prevent them from achieving 7% — 10% annual return.

The average investor tends to make common mistakes that devastate his returns. Extraordinary investors can actually beat the market over the long term, earning more than 7% — 10% in annual returns. Every extra percentage point of annual performance will make an enormous difference in your long-term wealth. The magic of compound interest is the key to compounding your returns over the long term.

When it comes to the power of compound returns in the stock market, there are five very important takeaways: 

• The longer you’re invested in the market, the more your money will grow. 
• The higher your annual investing returns, the more your money will grow. 
• Small improvements in your investment returns can make a HUGE difference in your wealth over time. 
• The more you can avoid paying taxes on your investment gains, the more your money will grow. 
• Solid stock investment returns compounded over long periods of time create almost magical amounts of wealth.