A random sample of 91 preschool children was assessed prior to receiving fo
rmal reading instruction. Verbal and nonverbal measures were used as predic
tors for the time of instruction required to accurately decode pseudowords
in the highly orthographically regular Finnish language. After 2 years, par
ticipants were divided into four groups depending on the duration of instru
ction they had required to reach 90 % accuracy in their reading of pseudowo
rds. Participants were classified as precocious decoders (PD), who could re
ad at school entry; early decoders (ED), who learned to read within the fir
st 4 months of Grade 1; ordinary decoders (OD), who learned to read within
9 months; and late decoders (LD), who failed to reach the criterion after 1
8 months of reading instruction at Grade 2. Phonological awareness played a
significant role only in differentiating PD from ED and OD. However, phono
logical awareness failed to predict the delayed learning process of LD. LD
differed from all other groups in visual analogical reasoning in an analysi
s not containing phonological awareness measures. Letter knowledge and visu
al analogical reasoning explained above 90% of the PD-LD difference. Presch
ool composite (objects, colors, and digits) naming speed measures best pred
icted reading fluency at the end of Grade 2. The supportive role of orthogr
aphic knowledge in phonological awareness, the role of visual analogical re
asoning, and the inability of phonological measures to discriminate late de
coders are discussed.