Investing in Your Future

Investing in Your Future

The rules most of us grew up with have consistently been thrown out the

window over the past 30 years. Loyalty to one particular job no longer

provides security. A four-year degree might get you a job, but that’s about

it. The average person today will change jobs seven to ten times in their

lifetime. Most will not end up settling in the careers for which they majored

in college.

Saving and investing won’t start to happen for most people until their kids

are out of college — when most adults are well into their fifties. Starting

to invest at age 50 only leaves about 20 years for accumulation. As we can

clearly see from the compounding chart below, it is not so important how

much you invest, but for how long you invest.

Take a close look at the compounding chart for a reality check. Invest

$500 a month at 7 percent from age 30 to 70 and you will have over $1.3

million. How much would you need to invest to end up with the same

amount if you wait until you are 50?

In order to achieve the same cash value in only 20 years (starting at age

50 through 70), your required monthly investment is nearly $2,500.

That’s almost five times the monthly investment needed than if you

started at age 30!