The Benefits of Early Retirement Planning
The Benefits of Early Retirement Planningand Tax Deferred Compounding
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| Year | Age | Contribution | Value |
| 1995 | 21 | $2000.00 | |
| 1996 | 22 | $2000.00 | |
| 1997 | 23 | $2000.00 | |
| 1998 | 24 | $2000.00 | |
| 1999 | 25 | $2000.00 | |
| 2000 | 26 | $2000.00 | |
| 2001 | 27 | $2000.00 | |
| 2002 | 28 | $2000.00 | |
| 2003 | 29 | $2000.00 | |
| 2004 | 30 | $2000.00 | |
| 2005 | 31 | $2000.00 | |
| 2039 | 65 | $22,000.00 | $492,215.00 |
Beth
| Year | Age | Contribution | Value |
| 2005 | 31 | $2000.00 | |
| 2006 | 32 | $2000.00 | |
| 2007 | 33 | $2000.00 | |
| 2008 | 34 | $2000.00 | |
| 2009 | 35 | $2000.00 | |
| 2010 | 36 | $2000.00 | |
| 2011 | 37 | $2000.00 | |
| 2012 | 38 | $2000.00 | |
| 2013 | 39 | $2000.00 | |
| 2014 | 40 | $2000.00 | |
| 2015 | 41 | $2000.00 | |
| 2016 | 42 | $2000.00 | |
| 2017 | 43 | $2000.00 | |
| 2018 | 44 | $2000.00 | |
| 2019 | 45 | $2000.00 | |
| 2020 | 46 | $2000.00 | |
| 2021 | 47 | $2000.00 | |
| 2022 | 48 | $2000.00 | |
| 2023 | 49 | $2000.00 | |
| 2024 | 50 | $2000.00 | |
| 2025 | 51 | $2000.00 | |
| 2026 | 52 | $2000.00 | |
| 2027 | 53 | $2000.00 | |
| 2028 | 54 | $2000.00 | |
| 2029 | 55 | $2000.00 | |
| 2030 | 56 | $2000.00 | |
| 2031 | 57 | $2000.00 | |
| 2032 | 58 | $2000.00 | |
| 2033 | 59 | $2000.00 | |
| 2034 | 60 | $2000.00 | |
| 2035 | 61 | $2000.00 | |
| 2036 | 62 | $2000.00 | |
| 2037 | 63 | $2000.00 | |
| 2038 | 64 | $2000.00 | |
| 2039 | 65 | $70,000.00 | $372,204.00 |
Choose to Save
Jane contributed $22,000 in eleven years. Because she began early she accumulated more money in her IRA account at age 65 ($492,215.00) than Beth who contributed for 34 years.
.
Beth contributed $70,000 in 34 years and accumulated less in her IRA account at age 65 ($372,204) than Jane.
If Jane continues to save $2000.00 a year until she is 65 years old she will accumulate over $860,000.00 in her IRA.
Figure out how much you'll need to live on when you retire.