Elevate your Future
“It is the set of the sails, not the directions of the wind, that determines which way you will go”
– Jim Rohn
What people don’t realise is that some simple maths, like compounding interest, can change the outcome for your retirement dramatically. Not knowing this information could mean you miss out on double the potential outcome.
There are three things you need for compounding interest; time, an investing dollar amount and an interest return %. Time is fixed, based on your age, but the amount you invest and the % returned are variable figures and the key to determining your outcome.
For example, let’s say you are 35 years old, you have $1,000 to invest and want a return of 8%. When you turn 65 and are ready to retire, your compounding interest would have accumulated to just over $10,000 over the 30 years. So, you have now turned your $1,000 into $10,000 instead of allowing your $1,000 just sit there for the same amount of time.
Now consider, if you change the investment amount from $1,000 to $10,000, or even $100,000, the outcome at the age of 65 are life changing.
Or you can simply choose to only increase the return rate by 2% – so from 8% to 10% return – the outcome will almost double to $18,000 with the same $1000 over the same 30 years.
The time you spend thinking about what it is you would like to achieve in your retirement is the same time you are not spending doing something about it. It’s time to put a plan in place so that when it’s time to retire, you’ll have the money and freedom to do what you want.
A MWL Financial Advisor can assess your current financial situation, show you what your outcome potential is and help you set the best strategy to reach those goals. Contact us now.