power of compounding

Early IRA Contributions Demonstrate Power of Compounding

January 16, 2011

The following example demonstrates the power of compounding due to making early annual IRA contributions:   Twin brothers, Peter and Paul, start contributing to their IRA at age 25; each put $5,000 per year in their IRA; each earns 10% per year.  The only difference is Peter makes his contribution at the beginning of each [...]

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