The Advantage of Investing Young
This message is for the young and their mature elders that have a financial influence upon them. The earlier you begin investing money the greater the financial impact for you down the road through the power of compounding.
Two co-workers, Jill and Edwin, both began investing the same amount of money per month ($100) for the same number of years (20) and received the same annual return (8%). The only difference is that Jill began investing at age 26 and Edwin at age 36. By age 55 Jill had accumulated $131,613 and Edwin only $59,295, a $72,318 difference.
The reason for this dramatic difference is the power of compounding. Even though Jill stopped investing at age 45 her account continued to grow dramatically over the next 10 years because she was earning on her new gains every year.
Time Jill is not adding to savings*
| Year | Additions | Interest | Balance |
| Age 45 | $59,295.00 | ||
| 46 | $0.00 | $4,937.95 | $64,232.95 |
| 47 | $0.00 | $5,349.16 | $69,582.11 |
| 48 | $0.00 | $5,794.63 | $75,376.74 |
| 49 | $0.00 | $6,277.21 | $81,653.95 |
| 50 | $0.00 | $6,799.94 | $88,453.89 |
| 51 | $0.00 | $7,366.24 | $95,820.13 |
| 52 | $0.00 | $7,979.67 | $103,799.80 |
| 53 | $0.00 | $8,644.19 | $112,443.99 |
| 54 | $0.00 | $9,364.07 | $121,808.06 |
| 55 | $0.00 | $9,804.94 | $131,613.00 |
Do not be one of those persons that have little to show for their hard work over the years. Begin rewarding yourself immediately by investing out of every paycheck. It will make a dramatic difference for you in the long run.
If you have any questions regarding how to make the most of your investments, reach out to a SouthPoint Financial Services Financial Advisory today!
Neither Cetera Advisor Networks LLC nor any of its representatives or agents give legal or tax advice. For complete details, check with your tax consultant or attorney. Cetera Advisor Networks, LLC is located at SouthPoint Financial Services, 706 North German Street, New Ulm MN 56073. OFFICE: 507-233-5600 Ext. 624 TOLL FREE: 877-794-6712 MOBILE: 507-217-9038 FAX: 507-533-5601 Securities and advisory services offered through Cetera Advisor Networks LLC, member FINRA/SIPC. investments are: • Not FDIC/NCUSIF insured May lose value • Not financial institution guaranteed • Not a deposit • Not insured by any federal government agency. Cetera is under separate ownership from any other named entity.