The Cost of Procrastination
Procrastination can be costly. When you get a late start, it may be difficult to make up for lost time.
Please refer to our transcription below if it is easier and/or more convenient for you:
On investing for retirement and other long term goals, you want to put time on your side. The sooner you begin investing, the longer your money can work for you. But it’s easy to procrastinate.
- Lets take a look at what procrastination can cost you:
Sally and Bob each decide to invest $250,000 into a retirement account.
- When Sally turns 50, she starts contributing $25,000 a year to an account that earns a hypothetical 6%. After 10 years, she stops making annual payments.
- Bob on the other hand, puts off his investing program. Finally, at age 60, he begins setting aside $25,000 a year into an account that earns a hypothetical 6%.
- They’ll both have contributed equal amounts. Sally has the magic of compound interest working for her. When they both reach age 70, Sally’s account balance is nearly twice the size of Bob’s.
Procrastination can be costly, and as Bob learned, when you get a late start, it can be difficult to make up for lost time. Call today and let’s get started now.