Procrastination could be costing you millions.

I’m sure you have heard that the best time to start investing was yesterday and the next best time is today. However when we are in our 20s, 30s or even 40s we think retirement is far too off in the future for us to deal with now - we have bills to pay and life to enjoy, right? But did you know waiting could be costing you millions (literally). That is why Einstein called compound interest the eight wonder of the world.

Example:

Rosie starts investing $200 per month at the age of 20. At the age of 65, assuming 10%* monthly compounded rate of return (meaning she doesn’t take any money out during the 45 years), her investment portfolio will be worth $2,096,500.

Ruby starts investing $200 per month at the age of 30. At the age of 65, assuming 10%* monthly compounded rate of return (meaning she doesn’t take any money out during the 35 years), her investment portfolio will be worth $759,327.

The difference between what they will have at the age of 65 is just over $1.3 million dollars!

The difference will increase to over $2.6 million if we assumed they were investing $400 instead of $200 per month.

How much is procrastination costing you?

Link here to a compound interest calculator if you want to have a go at seeing the numbers for yourself.

* Historically the 30-year return of the S&P 500 has been roughly 10-12%. Note that no investment returns can ever been 100% guaranteed and nothing on this website should ever been considered investment advice but is intended for educational purposes only.

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