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!
This post originally appeared at The Wealthy Accountant.