 |
 HOME |
THE POWER OF COMPOUNDING
CURRENT |
INVESTORS |
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AGE |
Mary |
John |
Bill |
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Now look at Bill. He |
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30 |
$ |
2,000 |
$ |
0 |
$ |
2,000 |
began investing at age |
|
31 |
2,000 |
0 |
2,000 |
30 and invested contin- |
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32 |
2,000 |
0 |
2,000 |
uously until he reached |
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33 |
2,000 |
0 |
2,000 |
age 65. |
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34 |
2,000 |
0 |
2,000 |
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35 |
2,000 |
0 |
2,000 |
Bill invested only |
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36 |
2,000 |
0 |
2,000 |
$20,000 more than |
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37 |
2,000 |
0 |
2,000 |
John, yet he accumu- |
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38 |
2,000 |
0 |
2,000 |
lated $231,439 more |
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39 |
2,000 |
0 |
2,000 |
than John did because |
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40 |
0 |
2,000 |
2,000 |
he didn't procrastinate |
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41 |
0 |
2,000 |
2,000 |
with his 401(k) retire- |
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42 |
0 |
2,000 |
2,000 |
ment program. |
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43 |
0 |
2,000 |
2,000 |
|||||
44 |
0 |
2,000 |
2,000 |
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45 |
0 |
2,000 |
2,000 |
|||||
46 |
0 |
2,000 |
2,000 |
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47 |
0 |
2,000 |
2,000 |
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48 |
0 |
2,000 |
2,000 |
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49 |
0 |
2,000 |
2,000 |
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50 |
0 |
2,000 |
2,000 |
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51 |
0 |
2,000 |
2,000 |
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52 |
0 |
2,000 |
2,000 |
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53 |
0 |
2,000 |
2,000 |
|||||
54 |
0 |
2,000 |
2,000 |
|||||
55 |
0 |
2,000 |
2,000 |
|||||
56 |
0 |
2,000 |
2,000 |
|||||
57 |
0 |
2,000 |
2,000 |
|||||
58 |
0 |
2,000 |
2,000 |
|||||
59 |
0 |
2,000 |
2,000 |
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60 |
0 |
2,000 |
2,000 |
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61 |
0 |
2,000 |
2,000 |
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62 |
0 |
2,000 |
2,000 |
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63 |
0 |
2,000 |
2,000 |
|||||
64 |
0 |
2,000 |
2,000 |
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65 |
0 |
2,000 |
2,000 |
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Total Accum |
$ |
231,439 |
$ |
172,702 |
$ |
404,141 |
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Investment |
-20,000 |
-52,000 |
-72,000 |
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Income/Growth |
$ |
211,439 |
$ |
120,702 |
$ |
332,141 |
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Assumptions: 8.0% after-tax yield which is not guaranteed. |
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