Based on an initial investment of $2,000. Based on a compounded annual interest rate of 8%. Amy began investing at age 30 and made contributions for 6 years. Greg began investing at age 40 and made contributions for 25 years. Example is for illustration only; rate of return is not guaranteed.

Hypothetical for illustrative purposes only and are not intended to represent the past or future performance of any specific investment. The balances shown represent the amount contributed and the interest compounded annually. Assume a hypothetical average rate of return of 8%, reinvestment of dividends and capital gains, and no current taxes paid on earnings in a retirement plan account. Schwab does not provide tax or legal advice.