Even if you are able to invest only a small amount, the sooner you begin, the more you’ll benefit from the power of compounding interest in the long run.
No Time Like the Present (2:26)
Peace of Mind (2:20)
This chart shows how much more you can save if you start early. A delay of even a few years could cost you thousands of dollars. Regular investing through a workplace savings plan such as a 401(k) or 403(b) is an easy way to get started.
|The Power of Compounding
|Starts Investing at Age:
|Stops Investing at Age:
|Monthly Amount Invested:
|Total Amount Invested:
|Balance at Retirement:
Performance is not indicative of future results. This example is based on a hypothetical annual return and is for illustrative purposes only. It is not representative of the performance of any mutual fund and is not intended to be a projection of future values. Mutual funds are subject to risks, such as the possible loss of principal, and rates of return will vary from year to year. This example assumes an annual rate of return of 8%, with all dividends and capital gains distributions reinvested. Taxes are not considered in this example and are due when distributions are taken from the plan. This illustration assumes contributions are made at the beginning of each month.