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$2,000 is more than $12,000It sounds impossible doesn't it! When it comes to investing it can be possible and timing is everything. Take the scenario below.
The first person is 21 years old and invests $400 per year for five years which is a total contribution of $2,000. His investment continues to accumulate interest until retirement when he now has $39,437.
The second person waits until he is 38 years old. He also invests $400 per year but for 30 years which is a total contribution of $12,000. At retirement his investment has only grown to $37,784 so $2000 is more than $12,000.
Try out your own scenarios with our Compound Interest Calculator.
| Starts Investing at Age 21 |
Starts Investing at Age 38 |
|
| 67 | Age at Retirement | 67 |
| 7% | Rate of Return | 7% |
| $400 | Yearly Contribution | $400 |
| 5 | Years Contributing | 30 |
| $2000 | Total Amount Contributed | $12,000 |
|
$39,437 |
Value at Age 67 |
$37,784 |
This is for illustration purposes only and is not a guarantee of results.
 High Cost of Waiting |
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