When Is The Best Time To Start Investing?
You've already know investing can make rich. But when is the best time to start investing? Should you wait until you had a lot of money? Or, having fun when you are still young, and begin investing right before retired?
The answer is RIGHT NOW. The sooner you invest, the better result you'll get. Let's compare two person's investing habit. For example, 30-year-old Mike makes a one-time $10,000 investment in stock market and earns an average 15% annual return, and if he never touches the money, that $10,000 will grow to $1,3 billion by the time he retires at age 65. But what if he waits until he’s 40 to make his single investment? That $10,000 would only grow to $329,190.
Growing At
| Start investing at age 30 | Start investing at age 31 | Start investing at age 40 | |
|---|---|---|---|
| Age |
15% |
15% |
15% |
30 |
$10,000 |
- |
- |
31 |
$11,500 |
$10,000 |
- |
40 |
$40,456 |
$35,179 |
$10,000 |
50 |
$163,665 |
$142,318 |
$40,456 |
60 |
$662,118 |
$575,755 |
$163,665 |
65 |
$1,331,755 |
$1,158,084 |
$329,190 |
It’s human nature to procrastinate. “I start saving next year,” you tell yourself. But the costs of delaying are enormous. Even one year makes a difference. In example above, what if Mike begin investing at 31? He only get $ 1,15 billion. Delaying investment only a year would cost him $150,000 in opportunity loss. That's a lot. The more he delays, the more he 'losing' money.
| < Prev | Next > |
|---|
