1. what is a yield curve and what changes had been observed at the time this article was published?

2. what is the impact of a flattened or inverted yield curve?

3. how accurate have inverted yield curves been in predicting future economic downtowns?

These 3 Charts Show The Amazing Power Of Compound Interest Libby Kane Jul. 8. 2014.3:57 PM Retirement accounts such as 401(k)s and Roth IRAs aren't just savings accounts they're actively invested, and therefore have the potential to make the most of this benefit. As Business Insider's Sam Ro explains, "Compound interest occurs when the interest that accrues to an amount of money in turn accrues interest itself." So why is that so important? The charts below will show you the incredible impact compound interest has on your savings and why starting to save in your 20s is one of the best things you can do. 1. Compound interest is incredibly powerful. The chart below from JP Morgan shows how one saver (Susan) who invests for only 10 years early in her career, ends up with more wealth than another saver (Bill), who saves for 30 years later in life. By starting early, Susan was able to better take advantage of compound interest. Chris, the third saver profiled, is the ideal: He contributed steadily for his entire career. RETIREMENT INSIGHTS Benefit of saving early 16 Growth of savings accounts $1.200,000 11 $1.000.000 Susan invests $3.000 annually between the age of 25 and 15 In total, sheets 550.000 Bill invests $5.000 annually between the ages of land 65 ots, he invests $150.000 Chaves 5.000 annually between the age of 25 and 65 $800,000 $200.000 Saving Saving fundamentals: Harnessing the power of compounding can greatly impact the amount of Savings over the long term. $600.000 $602.070 $400,000 5540741 $200,000 50 30 40 50 60 65 45 Age J.P. Morgan Asset Management 2. When you start saving outweighs how much you save. This chart by Business Insider's Andy Kiersz also emphasizes the impact of compound interest, and the importance of starting early. Saver Emily, represented by the blue line, starts saving the exact same amount as Dave (the red line), but begins 10 years earlier. Ultimately, she contributes around 33% more than Dave over the course of her career, but ends up with almost twice as much wealth as he does. Starting Saving at 25 vs. 35 $450,000 $400,000 $350,000 $300,000 $250,000 Savings Emily - Dave $200,000 $150,000 $100,000 $50,000 $0 55 09 65 30 35 40 Age Business Insider/Andy Kiersz 3. It can even make you a millionaire. Compound interest can get you pretty far. In fact, Business Insider calculated-based on your current age and a 6% return rate - how much you need to be saving per month in order to reach $1 million by age 65. You can also see the calculations based on different rates of return