Affinity Insights – Issue 24, March 2024
09/04/2024
Market Update – April 2024
22/04/2024
When you’re in your thirties, arguably the most impactful financial decision you can make is to save and invest a significant share of your income.
That’s because – due to the power of compounding – the longer you leave it, the harder it becomes to catch up.
For proof, check out these two scenarios.
- Person 1 invests $1000 per month, every month, from age 30 to 65, earning a return of 8% per annum. By the time they retire at 65, they’ve invested a total of $420,000.
- Person 2 also earns 8% per annum. But they don’t start investing until they’re 35. To make up the difference, they decide to invest $1500 per month. By age 65, they’ve invested a total of $540,000.
Can you guess who’s got the most money at retirement?
Person 1 = $2,106,587 (the dark blue bar on the graph)
Person 2 = $2,046,967 (the light blue bar)
So even though Person 1 has invested less money than Person 2 ($420k vs $540k), they’ve been able to finish with a larger nest egg simply because they started earlier.
The moral to the story? Start now.
This is general advice only. Please speak to a licensed professional for personal advice related to your specific situation. If you want expert advice on building wealth, speak to Affinity Private Advisors today by calling 1300 769 304, emailing enquiries@affinityprivate.com.au or filling in this online form.
The information contained in this article is current as at 16/04/2024. Any advice or information contained in this report is limited to General Advice for Wholesale clients only.
The information, opinions, estimates and forecasts contained are current at the time of this document and are subject to change without prior notification. This information is not considered a recommendation to purchase, sell or hold any financial product. The information in this document does not take account of your objectives, financial situation or needs. Before acting on this information recipients should consider whether it is appropriate to their situation. We recommend obtaining personal financial, legal and taxation advice before making any financial investment decision. To the extent permitted by law, Affinity Private Advisors does not accept responsibility for errors or misstatements of any nature, irrespective of how these may arise, nor will it be liable for any loss or damage suffered as a result of any reliance on the information included in this document. Past performance is not a reliable indicator of future performance.
This report is based on information obtained from sources believed to be reliable, we do not make any representation or warranty that it is accurate, complete or up to date. Any opinions contained herein are reasonably held at the time of completion and are subject to change without notice.
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