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Take advantage of compound interest
Compound interest is when you earn interest on your interest—and that may mean more money for you. It’s never too late to start saving, but the sooner you start, the more compounding is likely to help your money grow.
Steve contributed $50,000 more than Cathy, but started 15 years later. At age 65, Cathy had $232,418 more than Steve. Saving early has its advantages when it comes to compounding.
Hypothetical illustration only. Not intended to represent the past or future performance of any investment. Assumes contributions are made monthly at a 6% annual effective rate, compounded monthly. Actual performance will vary with market conditions.