UNCOMMON CENTS 52

WHY NOT START THE YEAR BY TAKING GOOD ADVICE TO CONTRIBUTE TO YOUR IRA AT THE START OF THE 2007? THE EARLIER YOU MAKE YOUR ANNUAL CONTRIBUTION, THE MORE TIME YOUR IRA HAS FOR POTENTIAL COMPOUNDING AND POTENTIAL TAX-DEFERRED GROWTH. IT ALSO WILL MAKE A SIGNIFICANT DIFFERENCE OVER TIME. BEGIN TO MAKE YOUR ANNUAL CONTRIBUTION NOW AND MAX IT OUT TO $4000 BY THE END OF THE YEAR. DO NOT WAIT UNTIL THE DEADLINE OF APRIL TAX FILING TIME. IF YOUR BEGIN THIS HABIT NOW, SAY AT 35, WITH A CONSERVATIVE 7% RATE OF RETURN, AFTER 30 YEARS, YOU WILL BENEFIT FROM $45,000 MORE PER YEAR. AFTER 30 YEARS YOUR TOTAL RETURN WOULD BE $540,000 RATHER THAN $495,000. A SIMPLE CHOICE OF EARLY OVER LATE INVESTING EARNS YOU EXTRA CASH AT RETIREMENT.

WHY NOT START THE YEAR BY RESOLVING TO CONTRIBUTE THE MAXIMUM TO YOUR IRA BEGINNING WITH YOUR FIRST INSTALLMENT IN JANUARY?

HINT: IT'S NEVER TOO LATE TO CHANGE BEHAVIOR.