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.
Rick Good spent ten years in the newspaper business, including with The News & Observer (Raleigh, NC) and The Greenville News (Greenville, SC). He co-wrote, with Melinda Coleman, Rutledge to Riley: Governors of South Carolina, 1776–Present (Published by The Greenville News), and is the author of Mind Games Trivia #1 (Amazon). He has recently spent 15 years creating original trivia content through Sounds Good Mobile Entertainment and continues that with his new company, SGME Software. He edits The Smart Reader’s money, real estate, and business coverage.
