Just plain-old math!
The early bird really could get the worm! In the chart below you will find no secret tips or tricks to investing that cite prior market events: just plain old math.
The amount of your total nest egg is exponentially influenced by the duration of time it has to compound. In other words, the earlier you start saving, the better, by leaps and bounds. Of the four scenarios, please focus on the two profiles in the middle. The “early saver & investor” invests ($200/month) for only 10 years, while the “late saver & investor” saves ($200/month) for 30 years. Both portfolios earn the same amount in this example (7%), but the early saver has a higher amount at retirement by nearly $30,000!
