Would you like to have $1 million saved for retirement? Start saving now! For every year you put it off, you pay the high cost of waiting.
If you start saving $95 each month at age 20, you could have one million dollars at age 65. But, if you wait until age 30 to start, you’ll have to put away $263 each month.
Wait 10 more years and start at age 40, you’ll have to save $754 each month. Get started at age 50, and you’ll have to save $2,413 each month. That’s 25 times more per month than if you’d started at age 20 – ouch!
Because of the power of compound interest, the sooner you start to save, the less you’ll have to put away to meet your goal. Don’t pay the high cost of waiting – start saving for retirement today!
Learn more financial concepts at How Money Works.
This is a hypothetical and does not represent an actual investment. Assumes annual end-of-year contributions, with a 10% nominal rate of return, compounded monthly. This example uses a constant rate of return, unlike actual investments which will fluctuate in value. It does not include fees and taxes, which would lower results.
video isn’t playing. says its a private video… I want to share but can’t.
thanks from an RVP
I think it’s time to get back to how our grandparents were. They lived below there means and saved, their values were much more than ours are today. The reason they had money is because they did save, they knew it wasn’t about instant gratification, but delayed. It’s time to change our attitude about money and start by having a plan and a budget.
incredible & timely. Primerica teaching is 2nd to none. 2nd class or place to no one!
I completely agree!
Thank you for your feedback. I believe the accumulation of wealth is living within our means and investing the rest. We need to start letting our money work for us, not just us working for our money. Our county is in a “fast food” mentality with instant gratification and we need to go back to modest living. We need to protect ourselves from dying too soon and living too long. What ever happened to leaving a legacy. Too many time recently I have seen people having car washes and bake sales for funeral expenses. That is not the legacy I want to leave for my children.
I’m so glad Primerica gives a great visual approach to educating people on how money works. I always give my clients a mental visual of how their spending and debt can kill their potential for growth. I always ask if they were told to jump into an ocean with water wings on and told to hold a 100 lb anchor, would they be able to swim 1 mile to shore? Almost all of them would say “no”. The ones who didn’t, I’d even go further and ask, “How?” They’d say, “I’d drop the anchor, because I would float holding that thing?” I’d explain that that’s what they are doing when they hold debt and try to save money in savings account. It normally hits home.
What I try to explain to my clients is the longer you wait, the more you have to deny yourself in the future. In this example, your total investment when starting at age 20 is only about 50k, if you wait until age 30 your total investment increases to 110k, by 40 you are investing 220k. Would you rather invest 50k or 250k to yield a million?
Can you imagine if this were taught in our homes and schools to our children from a young age? We could raise a generation of millionaires.
Hello.This post was extremely fascinating, particularly since I was searching for thoughts on this subject last week.