Just Starting Out? How to Be a Millionaire When You Retire

the power of compound interestThe Wall Street Journal ran an article last spring about the benefit of starting to save earlier, rather than later. The article was aptly titled, College Graduates, You Need to Start Saving Now and is worth a quick read. http://on.wsj.com/HVGCxt.

The Power of Compound Interest

If you take only one thing away from this article, take this:

Here’s how interest compounds over time: If you save $10 a day at age 25, you’ll have more than $1 million by age 65, assuming an 8% annual rate of return. If you start at age 35, you’ll have $445,000. At age 45, you’ll only have $180,000.


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