What is the cost of procrastinating in beginning an investment plan?
Many people intend to contribute to their retirement plans or establish a college education for their infant son or daughter but fail to follow through.
The price of this procrastination can be staggering. The chart below shows the difference in growth between an individual who makes a one-time $10,000 contribution to a retirement plan at age 25 and an individual who makes that $10,000 contribution10 years later, at age 35. (This assumes a tax sheltered investment with an annual rate of 10%). In addition, the benefits of compounding are severely reduced by procrastinating.
Many people intend to contribute to their retirement plans or establish a college education for their infant son or daughter but fail to follow through.
The price of this procrastination can be staggering. The chart below shows the difference in growth between an individual who makes a one-time $10,000 contribution to a retirement plan at age 25 and an individual who makes that $10,000 contribution10 years later, at age 35. (This assumes a tax sheltered investment with an annual rate of 10%). In addition, the benefits of compounding are severely reduced by procrastinating.
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