Retirement Income Strategist, KJ Financial, Liberty, Missouri
In one word...Time!
Okay, I'll go deeper. :)
Money, properly invested, grows and compounds over time. The sooner you begin the more you would have.
If you start your working career at age 25 and worked until age 70 that is 45 years of working.
Hypothetically, let's say you began putting away just $200 a month at age 25 and stopped at age 45 and earned a 7% actual return, if you didn't put in another penny and waited until age 70 you'd have $565.5458.87. That means you put in $48,000 of your money and allowed it to compound.
If you waited until age 45 to start saving for retirement you would have to put in $698.04 per month for 25 years earning that 7% actual return to end up with the same $565,458.87. It would take $209,410.68 of your money to accumulate that much money.
The sooner you start, even if it isn't that much money, put into the right places can really blossom into a tremendous amount of money.
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Okay, I'll go deeper. :)
Money, properly invested, grows and compounds over time. The sooner you begin the more you would have.
If you start your working career at age 25 and worked until age 70 that is 45 years of working.
Hypothetically, let's say you began putting away just $200 a month at age 25 and stopped at age 45 and earned a 7% actual return, if you didn't put in another penny and waited until age 70 you'd have $565.5458.87. That means you put in $48,000 of your money and allowed it to compound.
If you waited until age 45 to start saving for retirement you would have to put in $698.04 per month for 25 years earning that 7% actual return to end up with the same $565,458.87. It would take $209,410.68 of your money to accumulate that much money.
The sooner you start, even if it isn't that much money, put into the right places can really blossom into a tremendous amount of money.
Hope this helps.