Are you looking to start investing for your retirement? If your like most people several years have probably shuffled by and you’ve noticed the fact that you need to start investing soon or it may be to late for you to save at all.
In this article I’m going to give you the investment tips and information you need to know about why you should start investing early. I will show you why waiting is such a bad idea and how much it could cost you.
Starting early on your retirement investment will do two thing for you. First, it will allow you to invest in high rate of return investments that are a bit more risky whereas in your later years of life you will have to be more cautious with your money.
Second, it will allow your money to compound more often. For example, if you started saving for your retirement at the young age of 18 putting back $100 a month and earned an average interest rate of 12% till you retired at the age of 65 you would roughly have $2,300,000 saved up. Not bad for starting at the age of 18.
Now lets say instead of saving for your retirement at the age of 18 you decided to wait because you have to bills to pay and kids to feed, so you didn’t get started saving for your retirement until you were 45. You also decided to catch up for missing out in your younger years of saving money so you saved back $250 a month instead. You also decided at this point that you were older and that taking more risk with your money in the market would be a bad idea so you invested more cautiously and only averaged a 10% return on your money.
The result of starting late with your retirement is that you would only earned $189,000.
The End Results
As you can see starting late with your retirement is obviously not a good idea. In fact the difference in earnings you missed out on would be roughly 2,111,000! This is all be cause you decided that you didn’t start investing your money early. Even if you decide to not buy stocks or gold, you can still put your money in a savings account or an IRA account.