Investing a smaller dollar amount over a longer period of time can have a greater impact on investment results than investing a higher dollar amount for a shorter period.
The importance of investing early
This chart shows the dollar values at age 65 for a 25-year-old investing $75 a month and a 35-year-old investing $100 a month, earning a hypothetical rate of return as indicated on the chart. By starting to save earlier, the 25-year-old was able to accumulate more at age 65 despite investing less each period.
Source: ChartSource, Wealth Management Systems, Inc, 2016. This example is hypothetical and does not represent the performance of a particular investment. Your results will vary. Actual investing includes fees and other expenses that may result in lower returns than this hypothetical example.
Hypothetical results are not meant to represent the past or future performance of any specific investment vehicle. Investment return and principal value will fluctuate and when redeemed the investments may be worth more or less than their original cost. An account may earn more, may earn less, or may incur a loss. Final account balances are prior to any distributions, fees, and taxes which would lower the ending balance. Taxes may be due upon distribution. You may be subject to a 10% additional federal tax if you withdraw prior to age 59 ½.