Compound interest is when your money grows over time by earning interest on both the money you put in and the interest it already earned. In retirement accounts like a 401k, this growth comes from investing in things like stock funds (which invest in companies) and bond funds (which invest in loans to companies or governments). In a 401k, your employer gives you a list of funds to choose from. I suggest starting with funds instead of picking individual stocks or bonds because funds invest in man
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The Power of Compound Interest: Calculations and Examples
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How does compound interest work?
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No matter who said it, this fact is still true: Compound interest could make you millions of dollars over your lifetime. What exactly is compound interest? And how does it work? Compound interest is the interest you earn from the original amount (or principal) of an investment plus any interest you’ve already made through that investment. Basically, you’re earning interest on top of interest. When you save and invest money, you expect to get a return on your money, meaning you should end up with
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