Waiting To Invest

Waiting To Invest Can Have A High Cost

If your goal is to save $500,000 for retirement at age 67, look at the difference time makes:

Monthly Savings Required

Begin at Save Cost to Wait

Age 25 $89

Age 35 $224 More than 2 times more

Age 45 $602 Nearly 7 times more

Age 55 $1,926 More than 21 times more

The sooner you begin to save/invest, the greater the growth on your investment

The high cost of waiting

$100/month at 9%

Begin saving at: Total at age 67: Cost to wait

Age 25 $566,920

Age 26 $517,150 $49,770 (for waiting 1 year

Age 30 $357,240 $209,680 (for waiting 5 years)

Age 40 $137,780 $429,140 (for waiting 15 years)

These examples assume a hypothetical 9% constant rate of return. Rate of return is a nominal interest rate compounded on a monthly basis. Actual investments will fluctuate in value. The illustration does not include fees and taxes which would lower results. Investing entails risk, including loss of principal. Shares, when redeemed, may be worth more or less than their original value

Note: Information was taken from the book: How money works: A common sense guide to Financial Success by Primerica

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