Category: Investing

Will waiting to make investments make a significant difference?

Simply stated, the sooner that you put your money to work, the greater the benefits will be over time. In fact, when you make your investment can actually have a far greater impact on your retirement than the amount of money you invest.

Here’s an example. Suppose you started investing $100 a month in a variety of stocks when you were 25. Assuming you averaged 8% annual return on your money, you would have about $18,500 after 10 years. If you decided to stop investing and just let that sit, you would still have accumulated over $200,000 by age 65! Now, suppose you wait until you are 45 and started to invest $250 a month. Given the same annual rate of return, you would invest $60,000 and end up with only about $148,000 by age 65. Continue reading