          
          
          
                              Time and Growth
          
          
               Time is a vital factor in accumulating wealth. 
          The following tables illustrate the effect of time and
          after-tax interest in accumulating funds.
          
          
                  GROWTH OF A SINGLE LUMP SUM INVESTMENT
          
                           ͻ
                            Years of  $10,000 Compounded at 
                             Growth        6%        10%   
                           Ķ
                                5      $ 13,382   $ 16,110 
                               10        17,908     25,940 
                               15        23,966     41,770 
                               20        32,071     67,270 
                               25        42,919    108,350 
                               30        57,435    174,490 
                               35        76,861    281,020 
                               40       102,857    452,590 
                           ͼ
          
               In other words, in a period 8 times longer - (40
          years rather than 5 years) the investment result at 10%
          is 28 times greater growth ($452,590 divided by
          $16,110).
          
          
          GROWTH OF A FUND TO WHICH $2,000 IS ADDED
          AT THE BEGINNING OF EACH YEAR
          
          
          ͻ
            $2,000                                         
           Per Year   Total       Will             Percent            
            at 6%  Contributed  Grow to   Growth  Increase 
          Ķ
              5     $ 10,000   $ 11,951  $  1,951    20%   
             10       20,000     27,943     7,943    40%   
             15       30,000     49,345    19,345    64%   
             20       40,000     77,985    37,985    95%   
             25       50,000    116,313    66,313   133%   
             30       60,000    167,603   107,603   179%   
             35       70,000    236,242   166,242   237%   
             40       80,000    328,095   248,095   310%             
          ͼ
          
          
               These tables assume a 6% rate of return after
          taxes and that the earnings are reinvested.
          
          
              How the Dollar Value of Time Helps Disciplined
          Investors
          
               Below are two individuals who have different
          attitudes toward investing. The early investor chooses
          to begin investing $5,000 annually for retirement.  The
          late investor waits ten years before beginning a
          program.
          
                         Early Investor                Late Investor
          
          Age       Amount         Value               Amount         Value
          
          35       $5,000          $5,524                 0         0
          36        5,000          11,626                 0         0
          37        5,000          18,366                 0         0
          38        5,000          25,813                 0         0
          39        5,000          34,040                 0         0
          40        5,000          43,128                 0         0
          41        5,000          53,168                 0         0
          42        5,000          64,258                 0         0
          43        5,000          76,511                 0         0
          44        5,000          90,046                 0         0
          45            0          99,475              7,500          8,285
          46            0          109,891             7,500          17,438
          47            0          121,398             7,500          27,549
          48            0          134,111             7,500          38,719
          49            0          148,154             7,500          51,059
          50            0          163,667             7,500          64,691
          51            0          180,806             7,500          79,751
          52            0          199,738             7,500          96,387
          53            0          220,653             7,500          114,765
          54            0          243,759             7,500          135,068
          55            0          269,284             7,500          157,496
          56            0          297,481             7,500          182,274
          57            0          328,631             7,500          209,645
          58            0          363,043             7,500          239,883
          59            0          401,059             7,500          273,287
          60            0          443,055             7,500          310,190
          61            0          489,448             7,500          350,956
          62            0          540,700             7,500          395,991
          63            0          597,318             7,500          445,742
          64            0          659,865             7,500          500,702
          65            0          728,962             7,500          561,417
          
               The early investor contributed $107,500 less than the late
          investor, but outperformed the late investor by over $167,000. 
          Let time work to your benefit!
               There is also an insurance aspect here that is not shown by
          the pure numbers.  The early investor is protected should he
          become disabled or a bad economy limit his earning potential.  He
          already has his money doing the work for him.
          
          
