Compound Interest is a Powerful Thing

If you have money sitting in a saving accout, invest it. You are actually losing about 3% of it every year to inflation.

In the long run, on average, the stock market grows about 8% a year. If you are diversified, in the long run you will make 8% a year on your investment.

Based on these assumption,

If you invest $1,000 a year, you will have $113,283 in 30 years.

If you invest $5,000 a year, you will have $566.416 in 30 years.

If you invest $15,000 a year, you will have $1,699,248 in 30 years.


For those of you interested in investing here are some links that will help you out,

http://www.sec.gov/investor/pubs/begininvest.htm

http://www.sec.gov/investor/pubs/beginmutual.htm