Broker Check

The Impact of Investing Now, and Not Waiting

INVESTOR A
INVESTOR B
 
AGE
 
IRA CONTRIBUTION
 
YEAR-END VALUE
 
IRA CONTRIBUTION
 
YEAR-END VALUE
19
$2,000
$2,200
$0
$0
20
$2,000
$4,620
$0
$0
21
$2,000
$7,282
$0
$0
22
$2,000
$10,210
$0
$0
23
$2,000
$13,431
$0
$0
24
$2,000
$16,974
$0
$0
25
$2,000
$20,872
$0
$0
26
$2,000
$25,159
$0
$0
27
$0
$27,675
$2,000
$2,200
28
$0
$30,442
$2,000
$4,620
29
$0
$33,487
$2,000
$7,282
30
$0
$36,835
$2,000
$10,210
31
$0
$40,519
$2,000
$13,431
32
$0
$44,571
$2,000
$16,974
33
$0
$49,028
$2,000
$20,872
34
$0
$53,930
$2,000
$25,159
35
$0
$59,323
$2,000
$29,875
36
$0
$65,256
$2,000
$35,062
37
$0
$71,781
$2,000
$40,769
38
$0
$78,960
$2,000
$47,045
39
$0
$86,856
$2,000
$53,950
40
$0
$95,541
$2,000
$61,545
41
$0
$105,095
$2,000
$69,899
42
$0
$115,605
$2,000
$79,089
43
$0
$127,165
$2,000
$89,198
44
$0
$139,882
$2,000
$100,318
45
$0
$153,870
$2,000
$112,550
46
$0
$169,257
$2,000
$126,005
47
$0
$186,183
$2,000
$140,805
48
$0
$204,801
$2,000
$157,086
49
$0
$225,281
$2,000
$174,995
50
$0
$247,809
$2,000
$194,694
51
$0
$272,590
$2,000
$216,364
52
$0
$299,849
$2,000
$240,200
53
$0
$329,834
$2,000
$266,420
54
$0
$362,817
$2,000
$295,262
55
$0
$399,099
$2,000
$326,988
56
$0
$439,009
$2,000
$361,887
57
$0
$482,910
$2,000
$400,276
58
$0
$531,201
$2,000
$442,503
59
$0
$584,321
$2,000
$488,953
60
$0
$642,753
$2,000
$540,049
61
$0
$707,028
$2,000
$596,254
62
$0
$777,731
$2,000
$658,079
63
$0
$855,504
$2,000
$726,087
64
$0
$941,054
$2,000
$800,896
65
$0
$1,035,160
$2,000
$883,185
 
Less Total Invested:
$16,000
 
$78,000
 
NET EARNINGS:
$1,019,160
 
$805,185
 
Money Grew:
64-FOLD
 
11-FOLD
*AVERAGE COMPOUNDED GROWTH RATE OF 10%.
*Illustration assumes no withdrawals or taxes withheld. 
*Withdrawals prior to age 59 1/2 may be subject to ordinary income tax and a 10% IRA penalty.
 
 
This information is hypothetical and is meant as an illustration only. 
It is not indicative of specific return or yield on any particular investment.
 
The above information was taken from “Dow Jones Theory Letters”, June 28, 1989.