June 2025

The Quiet Power Behind Every Great Financial Plan

As we move from spring into summer – and mark our first full month in our new home at Stifel – we’re continuing the theme of embracing positive, meaningful change.

This month’s message, like last month’s, is less about markets and more about mindset. Specifically, the quiet but powerful idea of compounding – a force that involves patience, discipline, and time.

There’s an old Texas saying: “Don’t rush the brisket.” Anyone who’s ever smoked meat knows the truth – low and slow wins the day. The best flavors emerge not from high heat, but from patience, consistency, and a watchful eye. In our world of wealth management, compounding growth works the same way.

In fact, Albert Einstein famously called compound interest the eighth wonder of the world.¹ And if ol’ Albert had traded his chalkboard for a smoker, we imagine him out back in cowboy boots and a Stetson, tending to a brisket with the same quiet focus he gave his equations. Hat tipped low, he’d probably grin and say, “Let it smoke low and slow, and it’ll feed generations.” Turns out, whether it’s physics or finance, the real magic seems to come from patience and time.

“Let It Simmer”

The secret sauce of long-term wealth

If investing were a recipe, compounding would be the slow simmer – the step that doesn’t make headlines but it may make all the difference in the final flavor.

Here’s the idea: you invest money. That money earns returns. Then those returns earn returns. Over time, the growth stacks on itself, building momentum like a snowball rolling downhill – or a pot of gumbo deepening in flavor the longer it cooks.

It’s not flashy. It doesn’t feel urgent. But given enough time, it’s one of the most effective ways to build wealth. In fact, Warren Buffett built the majority of his fortune after turning 65 – because he stayed in the game long enough for compounding to do its work.²

So how do we bring this to life in your plan?

1. We focus on time, not timing.

Trying to jump in and out of markets perfectly is like opening the oven every five minutes – you lose heat. Instead, we stay invested through ups and downs, knowing that compounding rewards consistency, not prediction.

2. We reinvest and rebalance, on purpose.

Just like adding drippings back into the pot and adjusting the seasoning as it cooks, we make sure your dividends and interest aren’t sitting idle – and that your portfolio stays aligned with your recipe. Reinvesting fuels the compounding engine, while rebalancing helps maintain the right mix of ingredients so no one flavor overpowers the rest.

3. We diversify the ingredients.

Stocks might be the spice, but bonds and cash are the base. We balance your portfolio across asset classes to help manage risk and keep the stew from boiling over when markets get choppy.

A final word:

Compounding doesn’t ask for drama. It asks for discipline.

At MainStreet, we don’t chase fads or over-season the dish. We craft portfolios with intention, grounded in long-term planning, tax efficiency, and your unique goals. Compounding is just one ingredient—but when paired with time, strategy, and care, it may do something remarkable.

Let’s keep letting your plan simmer.

Your future is cooking – and we’re honored to be in the kitchen with you.

¹ https://clearwealthasset.com/einsteins-8th-wonder-of-the-world/
² https://www.cnbc.com/2024/05/03/most-of-warren-buffetts-wealth-came-after-age-65-
heres-why.html

Asset allocation and diversification do not ensure a profit or help protect against loss. Rebalancing may have tax consequences, which you should discuss with your tax advisor. When investing in bonds, it is important to note that as interest rates rise, bond prices will fall. Investing involves risks, including the possible loss of principal invested.