Skip to content

The Cold Equations Of Personal Finance

We have all heard the story of the twin brothers.

Brother A starts investing $5,000 per year at age 25 and stops once reaching age 34, only adding to his investment account for 10 years.

Brother B starts investing a bit later, dropping $5,000 into his investments starting at age 35 and keeps at it to age 65, a full 30 years.

At an 8% annual return, Brother A ends up with more money, yet Brother B invested $150,000 of his money while Brother A invested only $50,000. A cold equation, indeed.

Time, not timing, determines your outcome!

Full Story

This post originally appeared at The Wealthy Accountant.