Previously we discussed
the ease of having regular investments made through payroll deductions. Yet it doesn’t have to be an IRA. It could be any account outside IRA. It’s a fairly easy way to being a regular
investor. I could tell you many stories
of satisfied clients. The major point is
to start now rather than later.
Here are hypothetical
examples of two investors, Chad and Robbie.
They both invest $275 a month, for ten years, each earning 8% interest
rate. But Chad started early and
invested for 10 years then left the funds to accumulate. Robbie waited 10 years and then invested the
same amount for ten years earning 8%. The dramatic results after 20 years?
Chad the early starter
after 20 years would have accumulated……$112,415.
Robbie the late starter
after 10 years would have accumulated…….$ 50,646.
The late starter would
have Less Than Half!
It’s best to act now as opposed
to waiting.
This is only a hypothetical
example and does not represent any financial instrument. Rates of return will vary. Usually the higher the yield, the more risk. These figures do not factor
inflation, taxes or management fees.
This is not legal or tax advice.
I encourage you to seek legal, tax and investment advice from
independent professional advisors.