It's true. Most people over-look this, and don't realize the detrimental effects.. Just like the actual invested capital, the compound the same way, just in reverse. Which is where the term 'Reverse Compound' is most powerfully expressed :) It's hectic stuff.
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I bet a lot of people would be shocked to find they had a negative interest rate after accounting for fees, official inflation, and "unofficial inflation" (however much the CPI is understated at that moment...)
If a person is having a negative interest rate, then either their returns are next to nothing, which in that case, they are not educated enough in the first place to be making smart decisions.. Or the fees are astronomically high :D Which in that case, they also lack the knowledge to understand that it's a terrible investment :P
Many people today have brought the misconception along with them from the previous era that investment returns have to be low.. And it's simply not the case. Especially in the year 2017! xD
I made a post about compounding the other day, and used purely as an example the rate being received as 40% per year, and the comments section exploded with people mind-boggled at how someone could possibly ever achieve that.. LOL!
There is a reason why the millennials are all getting rich, leaving all the previous generations in the dust.. It's got nothing to do with age.. Just mindset.
People need to realize times have changed, and we are living in an absolute gold rush! (I know this is a little side-tracked, but thought it was a worthy point anyways :P)
I then made a post explaining where people could invest their money in 2017, and every single one of the investments I mentioned have all performed easily over 50%+++ yearly :D
You are more than welcome to go see everything for yourself :) @ENAZWAHSDARB
Anyways, this was long.. But a little fun to type at the same time HAHA xD