Take three typical investors:
Investor A invests $1,200 a year for 10 years beginning at age 18. Then he does nothing for the next 39 years.
Investor B invests $1,200 a year for 27 years starting at age 40.
Investor C invests $1,200 a year for 49 years.
Who has the most money assuming a 6 percent return?
Clearly, Investor C has the most. C put in $58,800 and ends up with $368,035.
But what of A and B?
A put in $12,000 and ends up with $184,793.
B still comes in last. B put in $32,400 and ends up with $85,896.
The moral from Kiplinger's Personal Finance? Early (investor A) beats often.
