The old quote “there is no time like the present" is no more relevant than when saving for your future. The sooner you start investing the sooner your money starts working for you – and work it really does.
Starting now gives you:
The graph illustrates the cost of waiting when it comes to investing.
This graph shows the benefit of starting saving now with a regular contribution of $200 per month. The graph assumes a return of 4% after fees and taxes and no withdrawals over the period. There has been no adjustment for inflation. Regular payments are assumed to be made at the start of each month. While we have made every effort to ensure that this illustration is accurate and reliable, it is intended as a guide only. Rates of return have been selected for illustrative purposes only. This rate of return is not guaranteed or promised.
In this hypothetical case, all three investors invested $200 per month until the age of 65 at a 4% net return (assuming reinvestment of all gains).
Investor "A" started investing at the age of 25.Investor "B" waited 10 years until they were 35 years old before they started investing. Investor “C” waited even longer and started investing at 45 years old.
The cost of waiting between Investor A and Investor C was $159,966.
Having a savings plan for your retirement that works for you is about developing a strategy that suits your current finances, your lifestyle and your future goals. It’s about making your money work harder and smarter for you so that you can live the life you want and deserve.