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Put time on your side |
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| The earlier you start to save and invest, the more you’ll have when you retire.
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When it comes to saving and investing, put time on your side — get started now
so compound growth can increase your retirement income. Compound growth
happens when your investment’s dividends or interest earnings are reinvested to
earn more dividends or earnings. "Getting earnings on your earnings" helps turn a
little into a lot over time.
With compound growth, the earlier you start saving, the less you’ll have to put
away to end up with the same amount. In other words, once you’ve worked for
your money, your money starts working for you.
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The benefit of starting early.
Meet Tony. He’s a 25-year old parole officer. Let’s say Tony has an investment that pays
8% interest each year. If he put $3,000 in that investment each year, he would have about
$367,000 after 30 years. If instead he started putting money aside 15 years later, he would
have to save over $11,000 each year to end up with $367,000.
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