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Text File  |  1995-01-03  |  3KB  |  56 lines
  1.           
  2.           
  3.           
  4.               HOW THE DOLLAR VALUE OF TIME HELPS DISCIPLINED
  5.           INVESTORS
  6.           
  7.                Below are two individuals who have different
  8.           attitudes toward investing.  The early investor chooses
  9.           to begin investing $5,000 annually for retirement.  The
  10.           late investor waits ten years before beginning a
  11.           program.
  12.           
  13.                          Early Investor                Late Investor
  14.           Age       Amount         Value               Amount         Value
  15.           35        $5,000         $5,524                 0         0
  16.           36        5,000          11,626                 0         0
  17.           37        5,000          18,366                 0         0
  18.           38        5,000          25,813                 0         0
  19.           39        5,000          34,040                 0         0
  20.           40        5,000          43,128                 0         0
  21.           41        5,000          53,168                 0         0
  22.           42        5,000          64,258                 0         0
  23.           43        5,000          76,511                 0         0
  24.           44        5,000          90,046                 0         0
  25.           45            0          99,475              7,500           8,285
  26.           46            0          109,891             7,500          17,438
  27.           47            0          121,398             7,500          27,549
  28.           48            0          134,111             7,500          38,719
  29.           49            0          148,154             7,500          51,059
  30.           50            0          163,667             7,500          64,691
  31.           51            0          180,806             7,500          79,751
  32.           52            0          199,738             7,500          96,387
  33.           53            0          220,653             7,500         114,765
  34.           54            0          243,759             7,500         135,068
  35.           55            0          269,284             7,500         157,496
  36.           56            0          297,481             7,500         182,274
  37.           57            0          328,631             7,500         209,645
  38.           58            0          363,043             7,500         239,883
  39.           59            0          401,059             7,500         273,287
  40.           60            0          443,055             7,500         310,190
  41.           61            0          489,448             7,500         350,956
  42.           62            0          540,700             7,500         395,991
  43.           63            0          597,318             7,500         445,742
  44.           64            0          659,865             7,500         500,702
  45.           65            0          728,962             7,500         561,417
  46.           
  47.                The early investor contributed $107,500 less than the late
  48.           investor, but outperformed the late investor by over $167,000. 
  49.           Let time work to your benefit!
  50.                There is also an insurance aspect here that is not shown by
  51.           the pure numbers.  The early investor is protected should he
  52.           become disabled or a bad economy limit his earning potential.  He
  53.           already has his money doing the work for him.
  54.           
  55.           
  56.