Bob and Lisa are both married, working adults. They both plan for retirement and

consider the $2,000 annual contribution a must.

First, consider Lisas savings. She began working at age 20 and began making an annual

contribution of $2,000 at the first of the year beginning with her first year. She makes 13

contributions. She worked until she was 32 and then left full time work to have children

and be a stay at home mom. She left her IRA invested and plans to begin drawing from her

IRA when she is 65.

Bob started his IRA at age 32. The first 12 years of his working career, he used his

discretionary income to buy a home, upgrade the family cars, take vacations, and pursue

his golfing hobby. At age 32, he made his first $2,000 contribution to an IRA, and

contributed $2,000 every year up until age 65, a total of 33 years / contributions. He plans

to retire at age 65 and make withdrawals from his IRA.

Both IRA accounts grow at a 7% annual rate. Do not consider any tax effects.