Each year the elder brother puts aside $20,000 for his retirement plan. On reaching 25, he gets married and, because of other financial commitments, ceases to make more contributions to his savings plan.

However, he allows what he has saved to remain in the bank untouched.

The younger twin, now also 25, thinks about his retirement and starts to save $20,000 each year.

To cut the story short, the elder saves money for seven years with a total contribution of $140,000 to his saving plan, whereas the younger twin saves $20,000 per annum for 30 years with a total contribution of $600,000.

Presuming both brothers save their money in the same bank earning the same annual interest of 10 per cent throughout, who do you think has accumulated more money for his retirement?

The answer? The elder twin.

Surprised?

Find out how he did it in the next Staff Relations column.



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