Finance and Savings Interest

William, starts saving $4,000 a year (about $333.33 per month) when he is 20 and stops after 20 years, after having saved 155,244.76. --45 years until 65

His brother, James, starts saving $4,000 at 40, and does so for 25 years, for a total of 231,653.79 saved.

155,244.76--666,290.44

They earn 6% on their savings.

At age 65, William will have $666,290.44 in his account, while James will have  $231,653.79 . Despite having saved less, William's nest egg will be almost three times greater because of compounding

I need to make sure I start saving early if I hope to have a strong retirement fund. If you put it off too long these savings are impossible to make up.