Starting to invest for retirement as soon as early as possible is a brilliant financial move. The reason is a magical little thing called compounding. It's what happens when your interest keeps earning interest, year after year.


If you start early, the effects of compounding can be huge. For example, suppose you start setting aside $1,000 a year (about $19 a week) when you're 25 years old, let’s say you invest it in a retirement account earning 8% a year. Even if you stop investing completely when you turn 35 - that is, you've invested for only 10 years - your total investment will have grown to nearly $169,000 by the time you turn 65 and are ready to retire. That's right: A $10,000 investment turns into $169,000.


OK, here's where it gets really interesting. Let's say you do the same exact thing, but you don't start investing the $1,000 a year until you turn 35. And you keep on investing that much every single year until you turn 65. That is, you invest $1,000 a year for 30 years, rather than for 10 years as in the previous example. How much do you wind up with when you're 65? Only about $125,000. That's right: Even though you have invested three times as much money, you wind up with less.


The earlier you start investing, the more you can benefit from compounding. That's why you need to get going as soon as possible.


Individual Retirement Accounts (IRAs) can be set up through Kensington Capital. There are a few different types of IRAs. Each has its own rules. The most common are Traditional IRAs and Roth IRAs. To learn how much you can contribute to your IRA our account executives will provide you complete Retirement Planning and have access to professional tax advisers and a variety of IRA plans. So when you choose an IRA plan you know that it's the right one for you.