Sometimes the simplest things can have the biggest impact.
The chart shows how much money you'll accumulate over time if you invest $250 a month starting at different ages. It assumes an eight percent average annual investment return.
If you start at age:
25: You'll accumulate $878,570 by age 65
35: You'll accumulate $375,073 by age 65
45: You'll accumulate $148,236 by age 65
As the numbers show, starting early is advantageous, thanks to a phenomenon known as compound interest. Compounding makes a sum grow at a faster rate than simple interest, because in addition to earning returns on the money you invest, you also earn returns on those returns over time.