“You should save and invest as early as possible!” This is one of the most repeated financial advice. Even though it sounds like nagging after a while, that doesn’t make it less true. You would end up with more money if you start investing while you are young and let compounding work its magic:

• Person A investing $100 a month between 21 to 41 years old would receive $471,458 at age 67.
• Person B started late by investing $100 a month between 47 to 67 years old and he would receive $59,295 at age 67.
• Although the same amount of money was invested, time and the compounding effect caused the huge gap in the amount received at retirement.

Source: Financialsumo For the more mathematically inclined, the compound interest formula shows you that time, expressed in “number of years”, will have the greatest impact on your retirement amount: Too many people focused on the rate of return and not enough attention to staying invested for long...