The sooner you start to save the better. By starting now, you won't have to put as much money away to achieve the same amount as someone who starts ten years after you.
Take a look at the difference - Terry starts to save at age 25; contributing $1,000 every year for 10 years. While Chris starts saving at age 35; contributing $1,000 for 30 years. Chris still can't catch up to Terry – it really pays to start early!
|Starts contributing at age||25||35|
|Number of years contributing||10||30|
Assumptions: Contributions made at the beginning of each year, compounded annually, at an 8% rate of return.