If two people save $100 a month for retirement, but one starts at 25 and the other at 35, the early saver will have nearly twice as much by age 65.
Starting to save now, wherever you are in your timeline, is better than starting tomorrow or next week.
Chris and Jennifer both invest $100 a month at a 5% annual compound rate of return.
Chris begins investing at age 25, putting away $100 every month until 65 and Jennifer begins saving $100 a month at age 35.
Saving in a tax-advantaged retirement account, such as an IRA or 401(k), can give your money an even greater boost.
Persons:
—, Jennifer, Chris, Andy Kiersz, Robinhood, Ameritrade, Hope isn't
Organizations:
Service, Business, Robinhood, supersavers