April 12, 2016

Saving 1% more really makes a difference

It's all about compounding "Compounding is basically a way of earning interest on interest. When you invest money, be it in stocks, bonds, or a savings account, if all goes well, you make some money on whatever amount you initially put in. When that happens, you can then invest your profits again, kicking off a virtuous (and lucrative) cycle of accelerating gains.
What does compounding have to do with retirement? It's simple: The earlier you start putting money into a 401(k) or IRA, the more time you get to take advantage of compounding. Similarly, the more money you contribute up front, the more you stand to earn on that money." Read how investing just 1% more can result in $100,000 more for retirement: http://www.fool.com/retirement/general/2016/04/06/heres-what-saving-1-more-will-do-for-your-retireme.aspx

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