Written and edited by Harry Rubins for his clients and friends.
Not intended as legal or tax advice.
Obtain professional advice before taking action on this information.

A Tortoise and the Hare both start their employment career together at age 25. The Tortoise has the foresight to start a savings program for retirement, even though retirement appears remote. For 10 years the Tortoise saves $2000/year, until reaching age 35. At that time, family responsibilities and the need to put the little ones through school put a stop to the retirement investment program. However, the Tortoise's assets grow at 9% per year until age 65.

The Hare, on the other hand, figures that the time to save is later in life when you have more money, and postpones contributing to any plan until age 45. Then, with the chill of winter in the air, the Hare puts aside $4,000 per year for twenty years, until reaching age 65. The investments of the Hare also earn 9%.

How do their nest eggs stack up against each other?

• The Tortoise who had the foresight to begin early comes out on top with $440,000.
• The Hare had to save:

  -- twice as much for
  -- twice as long to end up with
  -- half as much
  -- in retirement assets of just $233,000 vs $440,000 for the Tortoise.

Moral: It's never too early for you or your kids to start saving!