As mentioned in my video, below are the calculations and graphs for the two scenarios I illustrated:
For Kim’s investment, if she starts when she is age 21, investing an initial $5,000 then weekly deposits of $200 for the next 40 year, she should be able to accumulate $3,146,907 by the time she is age 61.
If Jim decides to start investing only when he is age 51, but doubles the amount that Kim initially invested in and increase weekly amounts for the next 10 years (i.e. initial investment $10,000, weekly deposits of $1,000), he should still only be able to accumulate $814,963. This is a difference of $2,331,944 that Jim could potentially be losing out on! Simple because he didn’t not start investing sooner!
Canna Campbell is the founder and director of SASS Financial Services, a boutique financial planning firm. She is Channel 9’s exclusive ‘money expert’, founder of financial media platform SugarMamma.TV and best selling author of The $1000 Project and Mindful Money.