"PROCRASTINATION IS A THIEF OF TIME"

"PROCRASTINATION IS THE THIEF OF TIME"

EVEN IN WEALTH BUILDING

AN EXCERPT FROM THE BOOK, “TAX-FREE RETIREMENT” BY PATRICK KELLY

Here goes the story. A true story about two individuals named Jill and Mark. 

At age 19 Jill started investing $2,000 a year with a compound interest of 10%. After only 8 years (age 27), she stopped investing and left her $16,000 to grow until age 65. 

Mark on the other hand, because of life’s demands, waited until he was 27 (the year Jill stopped) to begin saving for his retirement. He was still young and he was proud of his early start and his attention to his financial well-being. He also contributed $2,000 per year to his retirement, but he contributed for 39 years each year from age 27 until the year he retired, at age, 65. 

His contributions over the 39 years had been $78,000 (He started only eight years after Jill, but contributed $62,000 more dollars. 

The big question is this, “who has more money at retirement?”

If you said Jill, you are absolutely right. The value of her investment at age 65 is $1,035,160.

You may be scratching your head and saying, “wait a minute, how can that be?”

The answer is simple… the amazing power of time in the compound interest equation. It truly is astounding, isn’t it?

You may be thinking, “oh great, I’m 43 years old, and I haven’t done anything to save for my future. It’s all over. There’s no hope.”

Don’t get discouraged. It’s never too late to begin. If you take advantage of the principles we will be discussing in other tips that will follow later, and put yourself in a position to harvest tax-free dollars in retirement, you can supercharge your retirement years by avoiding tens of thousands- if not hundreds of thousands – of dollars of tax that can now be assimilated into your budget instead of going to line the eternally voracious bureaucratic coffers.