Investing ExplainedInvestingExplain.com

NEW TO INVESTING? SEE HOW IT WORKS, STEP BY STEP.

We explain investing in simple words. See real numbers from the past. See how the math works.

Not financial advice. Educational only.

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This site is for people who are new to investing. You don't need to know any big words. We explain each new word when it comes up.

No one here tells you what to buy. You see real numbers and make your own choices.

What you'll learn

We name funds and companies only to show where real numbers come from. This is not a recommendation.

  • How small amounts can grow

    When you invest a little money, it can grow over time. Then the growth can grow too. This is called compounding. Money can also shrink. Prices can drop, and you can lose money.

  • How dividends work

    Some companies share part of their profits with the people who own their stock. This payment is called a dividend. Many companies pay nothing. A company can also cut or stop its payment.

  • How one retirement account works

    With one kind of retirement account, you put in money you already paid tax on. If you follow the rules, the money you take out later can be tax-free. This is called a Roth IRA. (IRA means individual retirement account.) For 2026, the most you can put into all your IRAs together is $7,500 a year. If you're 50 or older, it's $8,600. It can be less, depending on how much you earn. Learn who can use one and when you can take money out.

    Source: IRS.gov, "Retirement topics – IRA contribution limits," as of October 23, 2026.

Where do I start?

Here are four steps that people new to investing often learn about. We put them in this order to keep things simple. The order is ours. Under each step, we name the government page that explains it.

This is general education, the same for everyone. It is not advice for you.

  1. Save for surprises first

    Keep some money in a savings account at a bank or credit union. It can pay for things you don't expect, like a car repair, so you don't have to go into debt. This is called an emergency fund. Investor.gov also says to think about paying off credit card debt that has a high interest rate.

    Source: Investor.gov (U.S. Securities and Exchange Commission), "Introduction to Investing," checked October 23, 2026.

  2. Get your employer's match, if there is one

    Many jobs offer a retirement plan, like a 401(k). Many employers add money when you put money in, up to a set amount. This is called a match. Investor.gov says to think about putting in at least enough to get the whole match, so you get all the money your employer adds.

    Source: Investor.gov (U.S. Securities and Exchange Commission), "Introduction to Investing," checked October 23, 2026.

  3. Learn about a Roth IRA

    An IRA is a retirement account you open yourself. With a Roth IRA, you don't get a tax break for the money you put in. But if you meet the rules, the money you take out later is tax-free. For 2026, the most you can put into all your IRAs is $7,500 a year, or $8,600 if you're 50 or older.

    Sources: IRS.gov, "Roth IRAs" (page last reviewed or updated August 9, 2026), and IRS.gov, "Retirement topics – IRA contribution limits," both checked October 23, 2026.

  4. Learn what an index fund is

    An index fund tries to follow a market index, like the S&P 500. (An index tracks the prices of a group of stocks or bonds.) Because index funds don't pay people to pick stocks, many cost less to own. But not all do, so check the cost first. Like any investment, index funds can lose money.

    Sources: Investor.gov, "Investor Bulletin: Index Funds," and Investor.gov, "Introduction to Investing," both checked October 23, 2026.

Which general approach sounds like you?

Answer four quick questions to see which of three general ways to invest sounds most like you. Your answers stay on this page. Nothing is saved or sent.

Try your own start

Pick a month to start. Pick an amount to put in each month. You'll see what it grew to, using real prices for a fund that follows the S&P 500. (The S&P 500 is a list of 500 big U.S. companies.) Prices can drop, and you can lose money.

From January 2010 to September 30, 2026, you put in $100 each month. That adds up to $20,100. With real prices, it was worth $78,378 at the end.

The biggest drop in that time: about 34%, from February 19, 2020 to March 23, 2020.

Big drops in this time:

  • February 19, 2020 to March 23, 2020: the fund dropped about 34%.
  • 2022: the fund lost about 18% that year.

A second start, 5 years later, in January 2015: $14,100 put in, worth $36,627 on September 30, 2026.

Past results don't promise future results.

Source: Yahoo Finance price and dividend data for the SPDR S&P 500 ETF (SPY), January 29, 1993 to September 30, 2026, as of September 30, 2026. Each month's amount is bought at the closing price on the first trading day. Each dividend is used to buy more shares on its cutoff date (also called the ex-dividend date). Numbers are after the fund's own yearly fee. They are before taxes, trading costs and inflation (prices rising over time). The drops count the dividends too. The second start is always 5 years after yours (or 5 years before, if yours is after September 2020). That way, one lucky date can't tell the whole story.

What could happen next

Projection based on past averages. Past results don't guarantee future results.

If you do this… keep adding $100 a month for 10 more years, to September 2036. You start from the real $78,378. It could end up somewhere in this range:

  • Low: $65,281, at -3.45% a year (the worst 10-year stretch in the data, February 1999 to February 2009)
  • Middle: $239,847, at 10.81% a year (the compounded yearly rate over the whole time, from January 1993 to September 2026, not a 10-year stretch)
  • High: $390,922, at 16.54% a year (the best 10-year stretch in the data, February 2009 to February 2019)

You would put in $12,000 more, $32,100 in all.

The starting value and the three rates are real. Only the amounts ahead are an estimate.

Rates: yearly growth with dividends used to buy more shares, from the same Yahoo Finance SPY data, as of September 30, 2026. We looked at every 10-year stretch from January 1993 to September 2026. Low is the worst one. High is the best one. Middle is the compounded yearly rate over the whole time: one even rate that gives the same end value, though real years went up and down. Money is added at the start of each month. Amounts are before taxes, trading costs and inflation.

See real dividend payments

Type a number of shares to see what one big U.S. drinks company really paid in 2025. To get a payment, you had to own the shares before a cutoff date. Many companies pay nothing, and a payment can be cut or stopped.

With 10 shares, here is what the company really paid in 2025:

  • April 1, 2025: $5.10 (cutoff date March 14, 2025)
  • July 1, 2025: $5.10 (cutoff date June 13, 2025)
  • October 1, 2025: $5.10 (cutoff date September 15, 2025)
  • December 15, 2025: $5.10 (cutoff date December 1, 2025)

Total for 2025: $20.40, before taxes.

Past results don't promise future results.

Source: Yahoo Finance dividend data for The Coca-Cola Company (KO), 2015 to 2025, as of October 23, 2026. We checked it against the company's dividend news releases of February 20, May 1, July 17 and October 16, 2025. Amounts are per share, before taxes.

Basic and Plus

There are two versions of the app. Basic has everything on this page. Plus adds deeper tools to learn with.

Basic Planned: no cost

  • Try your own start: the real past value, the biggest drop and a second start
  • Real 2025 dividend payments for one company
  • A low, middle and high range for 10 years ahead
  • Where to start, the quiz, and simple guides to compounding, dividends and one retirement account

Plus

More real numbers and more ways to learn with them.

$2.99/month or $24/year, coming soon.

Coming soon Upgrade to Plus and you get:

  • Look up other companies you choose: their real past dividends, and how each payment grew or was cut.
  • Compare two investments you pick, side by side: real past growth, drops and dividends.
  • See up to 20 years ahead: a low, middle and high range made from real past numbers, with the projection label.

Not financial advice. Educational only.

No stock picks. Plus never ranks or rates investments, and it never tells you what to buy. Side by side, each investment you pick is shown the same way, with no winner. It shows real past numbers so you can learn.

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