I see a lot of articles talking about how the magic of compound interest will make one reach X millions if $Y is invested every month for Z years. My understanding is that compound interest would work/apply only if the instrument is giving back some interest, such as maybe a CD or a high yield account.
How does that apply if invested in an index fund? The growth there is just due to stock value rise, and not due to the "magic of compounding". Is that right way to think about it?
Submitted September 29, 2018 at 05:12AM by dotMatters https://ift.tt/2xMx2LU
