How Compound Interest Rates Affects Retirement Funds
In the good old days, young Americans went to work for an employer who would promise a comfortable retirement in the form of a pension plan — that is, a defined benefit plan.
Today, it's increasingly become the responsibility of the worker to put money away for retirement in the form of a 401(k) plan or an IRA — that is, a defined contribution plan.
The goal of this post is not to explain the mechanics of retirement plans. Rather, we want to show you the importance of saving sooner than later.