Compound interest … or earning interest on interest … gives you the potential to accumulate more the longer your money is held. Say you take advantage of all those senior discounts and find yourself with $100 extra at the end of each month. Let’s also say you decide to save it (instead of frittering it away on Bingo). Here’s what it can pile up to 5, 10 and 15 years out … just about the time you need a new car, or a little more to pay for uncovered health-care costs.

The following is for hypothetical illustrative purposes only. It is not intended to imply the Performance of any specific investment. Taxes are paid upon withdrawal.

ASSUMES 6% interest. SOURCE: interest.com