When it comes to saving, some people delay starting early - they want to leave it a few years. The problem is, you can’t make up for lost time when it comes to compound growth. Take a look at the table below - it represents two savers; the first starts saving aged 21 years, and saves $5000 per year for just ten years. The second starts saving aged 31 years, and saves $5000 per year for thirty years.
The results are clear. The early saver has built a fund worth almost 30% more than the late saver.
Actionable Item
Compared to my 401K and IRA from 1999 to 2019, twenty years, I only made $4,000 net income on IRA CDs, and my 401K after 12 years still $2000 below the original investment into 401K plan in 2007. Here is one of my blogs related to IRA CDs.
No comments:
Post a Comment