The biggest advantage of investing early is simple, its TIME.
Time in the market and not timing the market is essential and the more time you have the better off you will be. As Albert Einstein said compound interest is the 8th wonder of the world. If we look at 4 different investors each investing at a different stage in life we can see the impact of starting early. If we assume a zero balance in year 1 and add $5,000 per annum with a 8% return and reinvest the returns it will look something like this:
| Start Age | At Age 65 |
| 25 | $787,176 |
| 35 | $364,615 |
| 45 | $168,887 |
| 55 | $78,227 |
So you can see the benefit of investing early is huge. So how do you get there? It’s important to start with an investment plan which a financial adviser can help you develop.
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by Simon Tworek
Simon is a Financial Adviser at Insight Wealth Planning. He has an advanced diploma and masters in Financial Planning and has a strong technical background.
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