What is the secret to having a great investment experience? A few key things come to mind. One of the great secrets of investing is putting TIME on your side. If you can save significantly when you are young, the powerful effects of compounding returns work in your favor. More time = more wealth! Let’s look at the Tale of Taylor and Sally:
It’s hard to believe, but Sally will end up with more money (even though Taylor saved for 30 years)! How can you put TIME on your side? It’s easy, start saving more NOW. It’s more important to save aggressively in your 20s, 30s, and 40s than it is to save in your 50s and 60s.
“Compound interest is the most powerful force in the universe” – Albert Einstein