This is a lesson on compound interest. Look at the table below to see what happens when a person puts away $2,000 a year for 7 years ($14,000 in total) and nothing more after that compared to a person who puts away $2,000 a year in the 8th year and every year after that for 42 years ($84,000 in total).
With the goal of getting to $1 million dollars, the amount of work that is needed by the late investor is more than obvious. Notice that it takes the late saver (Investor A) 34 years (age 59) and $68,000 to exceed the growth of the early saver (Investor B). Also look at the very bottom where it says “Money Grew”. The late saver saw their money grow almost 12 times while the early saver saw their money grow by more the 74 times.