My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

Back to Encyclopedia

Compound Interest

Definition: Interest computed on the sum of the principle and the accrued interest

Don't ignore the value of investing early. The power of compound interest, coupled with regular contributions and tax-sheltered treatment, means that an early start to investing will put a powerful ally--time--squarely on your side.

For example, let's say, starting at age 35, you invested $3,000 each year with a 14 percent annual return. You'd have an annual retirement income of nearly $60,000 at age 65. But $5,000 invested at the same rate of return beginning at age 45 only results in $30,700 in annual retirement income.

Browse By

POPULAR ARTICLES