Start investing early

Beginning to invest earlier in life can have a dramatic impact on your total investment returns in the long run.

Consider the following example. As all values are denominated in U$.$S$.$ dollars, you do not have to enter any dollar signs.

The Wisdom of Investing Early

Alyssa is an early investor. At age $30,$ she begins $$2,500$ per year in a tax$-$deferred account. The funds in her investment account compound at $9\%$ annually. She continues investing until age $40,$ when she stops contributing to her investment account altogether. After $10$ years of cumulative investing, Alyssa has invested a total of $x$ in her investment account. From that point on$,$ Alyssa's investments continue to compound until she reaches age $65.$

Points:

$\frac{0}{1}$

By contrast, Jayden is a late start investor. Jayden waits until age $40$ to begin his long$-$term investment plan. Starting at age $40,$ Jayden invests $$2,500$ per year into a similar tax$-$deferred account. The funds in his account compound at the same rate of $9\%$ annually. Jayden continues investing until he reaches age $65.$ After $25$ years of cumulative investing, Jayden has invested a total of $x$ in his investment account.

Points:

$\frac{0}{1}$