What is the Value of Time?
Time is the most valuable thing a person can spend. It’s more valuable than money; you can find ways to get more money throughout your work years, but you can’t get more time. Time is your most critical factor if your goal is to build wealth for your retirement and can continue to support your lifestyle without a steady paycheck.
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.
Let’s say you decide to start planning for your retirement at the age of 44, and not 37. You currently have $50,000 in your Superannuation Fund where your investments earn 10% annually.
That could cost you $800,000. How?
Simple! You would have missed the opportunity to compound your interest for an extra 7 years. Those 7 years will make a difference at the other end, when you reach retirement.
By doing some simple math on a calculator, you will see by adding 10% seven times to $50,000 you’ll roughly get double the value.
Put your details in the MWL Compounding Interest Calculator to see what you will be left with when it’s time for you to retire. Make sure to divide your ‘Total Balance’ by 20, the average time spent in retirement … Can you live off that balance annually? Remember,
- Times up, you don’t have any income coming in for the rest of your life
- The cost of living is constantly increasing, and
- Our life expectancy is also increasing
If you want more to live off in your retirement, it’s probably time you start making your money work for you.
What you do today will make a huge difference on your outcome. Start now by contacting a MWL Financial Advisor.