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Saving for retirement may be the farthest thing from your mind. But, it should be up front and center and here’s why:  Time and Compound Interest.

Fact: If you’re in your early 20’s you’ve got the investor’s best friend on your side — Time.

Did you know that if you invest $1,000 once a year in an investment that averages a 10% annual return – the average annual stock market return since 1926 – it could grow to more than $1 million after 46 years? (That’s right around the time you’ll be ready to retire.)Or that if you up the ante to just $166 a month – which is probably less than what is spent on lunch and cable TV – you’d hit the $1 million mark in just 39 years. Early retirement, here you come!

This is a hypothetical example and is not representative of any specific situation. Your results will vary. The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing.

1 Motley Fool, www.motleyfool.com

Compound interest is a simple principle that works consistently in practice.

You don’t have to be a whiz kid to get it. Compound interest is a simple principle that works consistently in practice. It goes like this:

When you invest, your investment may start to earn money.* Then the gains it accumulates also start to earn money. The good news is that your initial investment may snowball very quickly.

More good news – Your money may earn a lot of money.

Here’s how:

1. Start investing while you are young,

2. Raise the rate of return, or

3. Both. Your returns can increase exponentially.

Welcome to the miracle of compounding.

The smart money says, “save now — build wealth for later.” And Logix knows all about smart money. See how much you should be saving now.

*Investing in the stock market involves risk, including possible loss of principal amount invested. Performance is not guaranteed.

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