compound interest
2 questions
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How do I invest for retirement in my 20s?
In your 20s, your most valuable asset is time — a dollar invested at 22 is worth roughly four times more at retirement than a dollar invested at 42. The playbook is straightforward: capture your 401k employer match, open a Roth IRA, buy low-cost index funds, and invest consistently.
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What is compound interest?
Compound interest is earning interest on your interest — your returns generate their own returns, causing money to grow exponentially rather than in a straight line. Over decades, it's the single most powerful force in personal finance.