Most of the complexity in investing is noise. These guides cover the fundamentals — what investing is, why index funds work, how retirement accounts function, and how to start.
Compound interest is interest earning interest on itself. The math is simple. The results — given enough time — are remarkable. Here's exactly how it works, with numbers that make it concrete.
An index fund is a single investment that owns a slice of hundreds or thousands of companies at once. It's the investment strategy most financial experts agree on — and it's simpler than it sounds.
A 401(k) is an employer-sponsored retirement account with major tax advantages. If your employer offers a match, contributing enough to get it is the closest thing there is to free money.
Both IRAs are tax-advantaged retirement accounts you open yourself — not through an employer. The difference is when you pay taxes. Here's the simple rule for choosing between them.