Investing can seem tricky, but it's like planting a seed that grows over time! This news talks about a special fund called Schwab U.S. Dividend Equity ETF (SCHD) that invests in good companies that pay out money regularly (dividends).
It's like getting a little reward for owning a part of those companies. Even starting with a small amount can make a big difference if you keep adding more over time.
This is called compounding, where your earnings also earn money!
- SCHD invests in strong companies with a history of paying dividends.
- It's easy to buy and has low fees.
- Compounding your investments over a long period of time is very important.
Starting Investment | Annual Contribution | Time | Approximate Total After 10 Years |
---|---|---|---|
$500 | $0 | 10 years | $1,550 |
$500 | $500 | 10 years | $10,300 |