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Save Early and Often

When you’re in your 20s and 30s, retirement probably feels like a long time away.  And while that may be true, that’s precisely the reason why your youth is the best time to start saving and investing

How’s that? The earlier you are when you start to save, the more you will benefit from one of the most powerful concepts in finance: compound interest.

Compound interest is a pretty simple concept.  When you earn interest on savings (or dividends from a stock) you have the ability to re-invest those returns.  Then, that money can earn interest or dividends itself.  And so on, the cycle continues for as long as you let the process last.

A simple but powerful example.  If you had invested $100 in the stock market in the S&P 500 in 1970, you’d have over $11,000 today.  That’s turning a dinner for two into a used car.  Imagine what you could do if you saved $100 dollars every month, or every week!

Rule of Thumb: Saving money takes discipline.  Financial advisors recommend saving at least 20% of post-tax earnings.  But the more you can save, the better off you’ll be.  Trust us, you’ll thank us later.

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