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Author: clufool Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75335  
Subject: Start Early Young People. Date: 3/19/2000 3:02 PM
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I was doing some calculations on my Texas Instruments BA II and I want to emphasis to you young people to start your IRA ASAP.

Example: John, age 25 puts $2000 per year in an IRA for 10 years (to age 35) then stops. He then just lets it accumulate until age 65 (30 more years)Makes no more deposits. He has a total of $20000 invested. Let's assume he uses a 500 Index Fund and he averages 11% annual growth. By age 65 he will have $765,609 dollars.

2000 per year at 11% for 10 years=$33,444
$33,444 at 11% for 30 years = $765,609.

Jim waits until he is 35 and puts 2000 per year in every year until he is age 65. (2000 x 30yrs = $60,000 invested). By the time Jim is age 65 he will have accumulated a grand total of $398,042 dollars. Again I used the same assumption (11% annual growth).

$2000 at 11% for 30 years = $398,041.

I am age 63 and only wish that I would have had the IRA available when I was age 25 or even age 35. I give you young people out there this example because some of you may be tempted to wait. Don't.

cf
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