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The Cost of Procrastination

The Cost of Procrastination

| September 13, 2017

On our updated website, there is a video with the title, “The Cost of Procrastination.”  Here is the link to view it: The Cost of Procrastination.  But, waiting until age 50 (or age 60 in Bob’s case!) is waiting until rather late in life, wouldn’t you agree?

Let us start earlier in life and see what impact more time will have on the results.  And, this time we will use an annual contribution of $2,500, a typical 401(K) elective deferral.

This time our hypothetical Sally begins contributions of $2,500 a year at age 25 into a retirement account.  At a hypothetical rate of return of 6%, her account, ignoring taxes, would be worth $410,119 at age 65.

On the other hand, Bob procrastinates and does not begin contributing to his retirement account until 15 years later, age 40.  Assuming the same amount of $2,500 a year and the same hypothetical rate of return of 6%, his account value will only be $143,391 at age 65.

The lesson is clear: When it comes to investing, time is your ally.  Don’t procrastinate!  Start as young as you can, with whatever amount you can afford.  We can help you get started.

Until next time, cheers!


This is a hypothetical example and is not representative of any specific situation or investment product. Your results will vary. The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing.The illustration represented in this presentation is not indicative of all client experiences. 

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