The document highlights the importance of early savings and investment planning for achieving long-term financial goals, illustrated through the comparison of twin brothers Ken and Ray. Ken, who started saving at age 30, accumulated significantly more wealth by age 65 compared to Ray, who began investing later. It emphasizes that delaying financial decisions, like purchasing life insurance, can lead to missed opportunities and financial risks.

1. Age Makes A Difference
The Company You Keep®
Most People Have Long-term Goals:
Buying a home, starting a business, sending the kids to college, enjoying a comfortable
retirement. But too often they delay taking the steps necessary to turn their dreams
into realities.
Time Is On Your Side Ray Started to Save Late The Power of
Fortunately, early planning can Ray, the second twin, was also a Compounding Interest
help you maximize the power of bright guy who saw the need to put Given the fact that Ray contributed
time and reach your financial money away for his retirement. But $9,000 more than Ken, you might
goals. It’s simple: The sooner you he was a bit of a procrastinator and expect that Ray would have a
begin to save for your future didn’t begin implementing his significantly greater total for
financial needs, the more wealth investment plan until he was 45. At retirement at age 65. Surprisingly,
you can accumulate. that point he began investing $1,000 just the opposite is true.
a year in an IRA. He also averaged a
Although the idea is straight Assuming the tax-deferred IRA of
6% annual return, but continued to
forward and logical, most people each twin earned 6% a year, at age
make $1,000 investments for 20
fail to recognize the enormous 65 the account balance for Ken
years until he retired at age 65. His
increase in value that can result would be $68,117, while Ray would
contributions over the years totaled
from beginning to save early. The have only $38,993. The hypothetical
$20,000.
best way to demonstrate the power chart shown vividly illustrates the
of time is by way of example. Let’s
look at the different approaches to
investing taken by twin brothers,
Ken and Ray. The Impact of Age on the Twin’s Account Values
Ken Started to Save Early Dollars $68,117
Looking to build a large nest egg 70,000
for his retirement, Ken chose to
invest $1,000 per year in an 60,000 Ken (Early Start)
Individual Retirement Annuity (an Accumulation Without Contributing
IRA funded by a fixed annuity), 50,000 Ray (Late Start)
starting at age 30. He continued $38,993
his payments for 10 years until age 40,000
40, earning an average of 6% per
year on his investments.1 At age 30,000
40, he stopped contributing to the
IRA, but—and here’s the key—he 20,000
left his $11,000 of contributions in
the account, plus earnings, until 10,000
retirement at age 65.
0
Age 30 35 40 45 50 55 60 65
1
A six percent rate of return is for illustrative purposes only and is not intended to predict or guarantee
the results of any product.

2. Fortunately, early planning can help you maximize the power of time and reach your
financial goals. It’s simple: The sooner you begin to save for your future financial
needs, the more wealth you can accumulate.
sizable difference in the accumu- paid would balance out by age 65 It’s Never Too Early To
lated wealth of the brothers. What ($4,000 for 25 years, and $5,000 for Start Saving
happened? 20 years both equal $100,000).
Although today’s responsibilities
may take up most of your time and
“Earnings Earn Earnings” How Waiting Can Affect Your Cash
attention, it’s important to consider
Value, Death Benefit, and
Ray was on the right track. He what you want to accomplish in
Insurability
invested steadily and wisely, the future.
earning good returns. But he made Waiting would have a negative effect Let time work to your advantage,
a big mistake: He got a late start. on several key areas. A whole life beginning now.
So, though he invested almost twice policy offers the benefit of tax-
the amount his brother Ken did, deferred accumulation of cash value.
he had less money to enjoy at Generally speaking, the sooner Trish New York Life:
retirement. starts, the faster her cash value will The Company You Keep®
Now look at his twin’s experience. grow over the long term. These cash Since 1845, New York Life
By getting an earlier start, Ken values can be accessed through Insurance Company has been
benefited from 15 more years of policy loans2 to help her meet providing quality insurance
compounded interest. Left to financial needs. products to individuals, families,
accumulate in his account, the In addition, a whole life policy and businesses. For over 160 years,
earnings from his early years is eligible to earn dividends, if we have conducted our business
earned additional returns. and when they are declared by the around the central values of
company.3 Trish could use her financial strength, integrity, and
dividends in a variety of beneficial humanity—and have remained
Is Postponing the Purchase of committed to being a mutual
ways, including purchasing
Life Insurance Wise? additional insurance to enhance her company, owned solely by our
Let’s consider another example. total death benefit. Waiting would policyholders. This means that,
This will show you how postpon- mean missing five years of potential regardless of the economy, our
ing the purchase of life insurance dividends, as well as the opportunity focus is fixed on just one objective:
to a perceived “better time” can to increase the benefit paid to her meeting the needs of our
be costly. beneficiaries. customers, now and far into the
future. Talk to your New York Life
Trish has identified the need Waiting five years can also jeopard-
agent today and find out why we
for $250,000 of permanent life ize Trish’s insurability. She’s insurable
are The Company You Keep®.
insurance coverage and is at age 40, but may be uninsurable
considering buying a $250,000 due to a health condition at age 45. Note: The examples discussed herein
whole life policy. This policy would Perhaps the greatest risk in waiting are for informational and illustration
provide immediate insurance is if she were to die in the next five purposes only. They’re not intended to
predict or guarantee the performance
protection and offer guaranteed years. In that case the cost would be
of any insurance or financial product.
cash value accumulation that she the $250,000 death benefit her
could later borrow against2 to help beneficiaries would not receive.
purchase a condominium or help Purchasing this policy now may
supplement her retirement income. cost no more than waiting five years.
At age 40, Trish’s annual premium In the future, however, the cash 2
Outstanding policy loans accrue interest and
decrease the policy’s death benefit.
would be $4,000, but she’s debating value and death benefit should be 3
Dividends are based on the policy’s applicable
whether or not to wait five years, at higher. Most importantly, insurance dividend scale, which is neither guaranteed nor
which point her premium would be protection would begin immediately. an estimate of future performance. Although
dividends cannot be guaranteed, New York Life
$5,000. Looking at both scenarios So why would Trish want to risk has paid annual dividends to policy owners for
over the long term, total premium waiting? over 150 successive years.
New York Life Insurance Company
New York Life Insurance and Annuity Corporation (a Delaware Corporation)
51 Madison Avenue, New York, NY 10010
www.newyorklife.com 13482(05/07) SMRU 00287120CV(Exp.05/09)