It probably doesn’t come as much of a surprise that the earlier you begin to invest the more money you can accumulate, but just how much more? In this example even a modest saver can benefit by saving $250,000 more just by starting a few years earlier. Click on the thumbnail below to open the full-size image.
As you can see, Susan invested only $20,000 over ten years while Bill invested $60,000 over the course of 30 years and Susan came out significantly ahead. Those ten years that Bill waited to start saving cost him a quarter of a million dollars at retirement. In this example it is important to also consider that we are using a very modest investment of $2,000 annually. If you are maxing out your IRA or 401(k) you can see that these numbers would be significantly larger.
Waiting can cost you time and money
- Many investors put off retirement planning until their expenses are lower, their children are older or markets look better.
- You may wait, but retirement won’t. Every day you delay means one less day your money has to work toward your goal.
- It’s never too late–or too soon–to prepare for retirement.
- Start today and invest as often as possible. Even small, regular investments have the potential to grow into significant amounts over the long term.
Image courtesy of JPMorgan
Incoming search terms:
- cost of procrastination
- the cost of procrastination
- what is the cost of procrastination
- the price of procrastination
- costs of procrastination
- what is the price of procrastination
- the price of proscrastinstion
- the high cost of procrastination investing
- the costs of procrastination
- the cost of Procrastination investing
Don't Miss: Scottrade Review - $7 Trades and Get 3 Free Credit Scores and Hot Credit Card Deals
Filed Under: Investing
About the Author: Jeremy Vohwinkle is a Chartered Retirement Planning Counselor® and spent a few years working as a financial planner. Today, he helps people make the most of their money by writing about personal finance here and elsewhere on the web. Jeremy is also Coach at Adaptu and a regular contributor for other publications such as Intuit, and American Express. Be sure to follow Jeremy on Twitter or Google+.