It’s Never Too Late To Start Investing!

Today I want to talk about investing for the future.


Why do we invest? There are many reasons to invest your money. The most common reason that comes up in a conversation is Retirement. I’m here to tell you that investing for the future is essential. I here a significant amount of people in the media and everyday life stating they don’t have enough money to invest. Yes we all have certain financial obligations, but that isn’t a good enough reason to not save a little money for a rainy day.

The key to investing and saving for the future is to simply start. Starting is half the battle. Not starting could cost you 100’s of 1,000’s of $$$ down the road. Procrastination is not part of your future financial well being! It’s never too late to start!

The figures below are a few calculations I compiled to show what just a few dollars invested over a set period of time can turn into a substantial amount of money. This displays how long term investing really adds up.

Interest rates are hypothetical and are not guaranteed.


Age: 20
Monthly Contribution   /   Final Nest Egg:
$40                                                               $730,184.47
$80                                                               $1,460,368.93
$160                                                             $2,920,737.86
Invested (Yrs): 45
Retirement Age: 65  
Interest Rate: 12%      

Age: 30

Monthly Contribution   /   Final Nest Egg:
$40                                                               $232,062.30
$80                                                               $464,124.59
$160                                                             $928,249.18
Invested (Yrs): 35
Retirement Age: 65
Interest Rate: 12%

Age: 40

Monthly Contribution   /   Final Nest Egg:
$40                                                               $71,680.29
$80                                                               $143,360.58
$160                                                             $286,721.15
Invested (Yrs): 25
Retirement Age: 65
Interest Rate: 12%

Age: 50

Monthly Contribution   /   Final Nest Egg:
$40                                                               $20,041.57
$80                                                               $40,083.15
$160                                                             $80,166.30
Invested (Yrs): 15
Retirement Age: 65
Interest Rate: 12%

These numbers show how the magic of compound interest works to your advantage. You might ask, what is compound interest? Compound Interest means that each time interest is paid, it is added to or compounded into the principal and thereafter also earns interest. Definition pulled from http://www.extension.iastate.edu/agdm/wholefarm/html/c3-05.html
Calculations came from an investment calculator.  Feel free to input your numbers!
http://www.moneychimp.com/calculator/compound_interest_calculator.htm


This calculation above was part of the reason I started to invest 8 years ago. $40 a month is definitely obtainable for most. For instance $40 a month could be 1 trip to a nice restaurant, purchasing a drink and a bag of chips at work daily, or eating out for breakfast on a routine basis. Yes these examples may not pertain to you, but think real hard of what you might give up for a chance of financial freedom in retirement.

Remember it’s never too late to start investing!

Thank You,

Clay-

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