Bogleheads:Featured article/Importance of saving early

Saving early is important, as the power of compound interest will help you to reach your savings goal, even with low expected returns. The concepts apply for savings towards any goal, such as retirement, purchasing a home, or saving for an education. The longer the timeframe, the larger the impact of the power of compounding.

If you start late, you can still catch up. However, you'll need to invest more money, as compounding has much less time to have an effect. (more...)