Saturday, June 29, 2019

Waiting to Invest is Costing You... A Lot

Here is the link.

spending habit and saving habit.
68% other liabilities -
59% do not know how to start


The issue - Waiting to invest
Thousands of dollars difference

Cost #1 Inflation, price inflation
Government print more money

1.8%   inflation rate
1.6%   inflation rate

Purchase power - saving account GIC - less risk, less return
CPI inflation rate

Cost #2 Opportunity cost
Time value of the money -

Me 
1000  -> 1020 (one year)

You
1000

Grow exponentially.  Compounding
8th wonder of the world - start early, cut high exponential return

$800,000 Age 65
1,667/ month, age 25
Average return 6%

$400/ month

Age 45
6%
$1,764/month




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