By starting at age 25. Look at what the results are with an 8% return. Check out what happens if you wait but put more money in. This simple strategy could turn you into a millionaire. Discipline and consistency beats everything in the world of investing.
Our young investor saved $2,000 a year from the age 25 – 70 for a total saved of $92,000. Yet at 8%* return this investor ends up with $903,800.30 for his retirement savings.
Our older investor saved $5,000 a year from the age 40 – 70 for a total saved of $155,000. With an 8%* return this investor still ends up with less than our younger saver coming in at $666,067.69 for retirement.
The power of saving as early as possible can be the difference between living month to month in retirement and a fun and secure retirement.
It might require a small sacrifice such as giving up a vacation or less going out to dinner less but the difference over time is huge. $2,000 a year is $168 a month – I challenge you to find something you can forgo in order to start saving today!
Source: Roger Wohlner