It’s that time of year when people acknowledge “things” for which they are thankful. Things can be replaced or reacquired if necessary. There is however, one thing that investors should be thankful for that can never be replaced and that is time!
Time works in your favor as an investor if you start early in life; however, it’s not so favorable if you start investing late in life. If for example, you invest $5,000 per year from age 25 until age 35 and stop, assuming a 7% return, your invested savings of only $50,000 could grow to over $602,000. On the other hand, if you invest that same $5,000 per year from age 35 to age 65 you will have invested $150,000 and your savings will only grow to just over $540,000. The earlier you start and the more compounding time your money has to grow, the less you need to front for your investment which makes saving for retirement, education, or any goal, much easier!
Let time be on your side. Moreover, if you are getting a later start in life, don’t sweat it, just get started and put time on your side. So be thankful for your health, for your family, for friends and for the creature comforts you love. But as an investor, add time to your list of things for which you are thankful.
As an independent Certified Financial Planner™, I can help you set a savings goal and chart a timeline. Contact me and let’s get started! #talktometuesday #education #Hireaplanner #thankful #Thanksgiving #compounding #time