The Power of Compounding

Have you ever wondered why our mother kept nagging us to save money while we were young?  She might not be able to tell you in a scientific manner, but it's all about the power of compounding.

Let's compare the savings of 2 investors, Investor A and Investor B.  Investor A saves $20,000 each year from 28 years old to 65 years old (i.e. 38 years in total).  Investor B save $20,000 each year from 19 years old to 27 years old (i.e. 9 years in total).  Let's further assume that both of them are able to invest their money at 8% returns every year.  The following table shows the amount of money that Investor A and Investor B will get at the end of their 65 years old:      
 

Investor B starts saving earlier, but only for a period less than 1/4 of Investor A's.  However, Investor B will end up saving more money for his retirement at 65 years old.

Would you reconsider to start saving earlier?