Flashhead
Cost

Pam

Pam begins saving $2000 per year at age 25, saves for 10 years, and then stops completely at age 35.

Michael

Michael delays saving until he turns 35 and then begins saving $2000 per year for 30 years until age 65.

Karen

Karen begins saving $2000 per year at age 25 and saves for 40 years until age 65.

*Assumes a seven percent rate of return and tax-deferred compounding.

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