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The Power of Compounding

Current Age Saver A Saver B
25 $2000 0
26 2000 0
27 2000 0
28 2000 0
29 2000 0
30 2000 0
31 2000 0
32 2000 0
33 2000 0
34 2000 0
35 0 $2000
36 0 2000
37 0 2000
38 0 2000
39 0 2000
40 0 2000
41 0 2000
42 0 2000
43 0 2000
44 0 2000
45 0 2000
46 0 2000
47 0 2000
48 0 2000
49 0 2000
50 0 2000
51 0 2000
52 0 2000
53 0 2000
54 0 2000
55 0 2000
56 0 2000
57 0 2000
58 0 2000
59 0 2000
60 0 2000
Total Accum. $231,439 $172,702
     
Total Contributions $20,000 $72,000



Assuming 8% annual rate, which does not reflect any investment and it is an illustration only As you can see from this example, "Saver A" contributed less and accumulated more than "Saver B", just because "Saver A" started earlier.

 

_______________________________________________________________________

Moti Gur is a Registered Representative with and securities offered through Financial Network Investment Corp and Cetera Adviser Networks LLC.
A registered broker/dealer, Investment advisor and member FINRA/ SIPC
3807 Wilshire Blvd, Suite 1040 Los Angeles, CA 90010 213-385-6237
http://www.financialnetwork.com

 

   
   
 
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