Paul B. Farrell

Trust the explosive power of compounding. A 25-year-old can put roughly $3,000 in an IRA every year and with ten percent average returns retire a millionaire at 65. A 45-year-old can do it by maxing out their 401(k) with $1,250 a month. Notice the explosive power: At 65, most of your million dollar retirement portfolio will be in the growth. For example, the 25-year-old will have invested only $120,000 over 40 years; the rest is compounded interest and appreciation!