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17/09/2019 09:11:48 PM

Personal Investment Perspectives

The two most important things that you can learn today are that time is on your sideand that you must act now(otherwise you lose the advantage of time).

•             The sooner you invest,  the more you will earn

•             The sooner you invest,  the less risky you need to be

Answer the following three questions regarding your retirement planning:

•             At what age would you  like to be able to retire?

•             For how long do you hope to be retired?

•             How much retirement income do you want to receive every month?

Consider each of the following investment variables and the ways in which each one connects to your plans and your personality:

•             Risk

•             Rate of Return

•             Liquidity

•             Knowledge

Consider the “cost of waiting” (not acting now)

Jo is a 24-year-old college graduate who has seized the opportunity to invest $200 per week into a mutual fund/retirement program that promises to return 12%. How much money will Jo have earned in 25 years (age 49)?

$200 per week x 52 =$10,400 annually

$10,400 x 133.33 =$1,386,632

Shmo is a 24-year-old college graduate who is full of excuses and has decided to wait 10 years before enrolling in the same program as Jo. How much money will Shmo have earned in 15 years (age 49)?

$200 per week x 52 =$10,400 annually

$10,400 x 37.28 =$387,712

The cost of waiting is $1, 386,632 -$387,632 =$998,920!!

Will you be a Jo or a Shmo??


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