When investing, put time on your side

Now that we’re well into autumn, the days are getting noticeably shorter. The change in seasons reminds us that time is passing – and it’s important to use that time wisely. When used well, in fact, time can be your greatest gift in many walks of life – and that’s certainly true when you invest.

To illustrate the importance of time, let’s look at a scenario. Suppose you start saving for retirement when you are 25. If you invest $3,000 per year in a tax-deferred vehicle, such as a traditional IRA, and you hypothetically earn a 7% annual return, you will have accumulated more than $640,000 after...