newhome2019-08-19T23:00:02+00:00

Learn the miracle of compound interest and harvest the benefits!

 

Casey Marx

We’re just past the halfway point in the year, and around this time of year I often get asked: “Casey, what is the most obvious financial mistake you see made and how can I avoid it?”

So, without any further ado, here is my number one financial fail.

#1: Ignoring the “Miracle” of Compounding Interest
People argue about tax-deferred growth versus after-tax growth, different investment vehicles, fee structures, and so forth until they’re blue in the face – but by FAR the dumbest mistake to make is to wait to save.

Imagine you have two people, let’s call them Bob and Dave. Bob starts saving $300 per month at age 20, then stops saving at 27.

Dave gets a later start to saving at 35 and saves the same $300 each month, all the way until he’s 65 at retirement.

All things remaining the same, who has more money at age 65, Bob or Dave?

Bob!

Bob only invested $28,800 of his own money, while Dave invested $108,000!

However, the miracle of compounding took over for Bob, and the extra 15 years of compounding interest made Bob a richer man, even though he saved significantly less of his own money.

The moral of the story is the time to start saving is now.

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INVITED AUTHORS

Brad Pistole

Brad Pistole

Trinity Insurance & Financial Services, Inc.

Lyle Boss

Lyle Boss

Boss Financial & Insurance Services, LLC

Joe Edgeworth

Joe Edgeworth

The Edgeworth Insurance Group

Al Martinez, America's Financial Solutions Group

Al Martinez

America’s Financial Solutions Group, LLC

Lisa Cassidy

Lisa Cassidy

America’s Financial Solutions Group, LLC

Chad Owen

Chad Owen

Eagle Shadow Life & Annuity , LLC

Robert Kelly

Robert Kelly

Safe Money and Income Solutions

Dave Stanley

Dave Stanley

Financial Consultant | CEPP

Jim Junge

Jim Junge

Benefit Services Group

Laurabell Lyster

Stephen Dybwad

Investment Advisor Representative

Steve Kerby

Steve Kerby

Eric Hutter

Eric Hutter

Osprey Retirement Solutions

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