In two previous posts I illustrated the value of investing early and often.  Specifically, the earlier you start an investment plan, the more time it has to compound and grow into wealth.  More obviously, the more that is invested, the more there is to grow.  This illustration also demonstrates the power of compounding, by showing the difference between averaging a 7% rate of return over a long period of time, versus achieving a 10% rate of return.  The point is not to suggest that these rates of return represent two specific asset classes.  It merely shows how dramatically a 3% difference in average returns affects a long-term investment plan.  We’ll build on these themes in future posts when we discuss appropriate levels of risk.