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How the Dollar Value of Time Helps Disciplined Investors

by

Adam Starchild


Below are two individuals who have different attitudes toward investing. The early investor chooses to begin investing $5,000 annually for retirement. The late investor waits ten years before beginning a program.

Early InvestorLate Investor
AgeAmountValueAmount Value
35 $5,000 $5,524 0 0
36 5,000 11,626 0 0
37 5,000 18,366 0 0
38 5,000 25,813 0 0
39 5,000 34,040 0 0
40 5,000 43,128 0 0
41 5,000 53,168 0 0
42 5,000 64,258 0 0
43 5,000 76,511 0 0
44 5,000 90,046 0 0
45 0 99,475 7,5008,285
46 0 109,891 7,50017,438
47 0 121,398 7,50027,549
48 0 134,111 7,50038,719
49 0 148,154 7,50051,059
50 0 163,667 7,50064,691
51 0 180,806 7,50079,751
52 0 199,738 7,50096,387
53 0 220,653 7,500114,76
54 0 243,759 7,500135,06
55 0 269,284 7,500157,49
56 0 297,481 7,500182,27
57 0 328,631 7,500209,64
58 0 363,043 7,500239,88
59 0 401,059 7,500273,28
60 0 443,055 7,500310,19
61 0 489,448 7,500350,95
62 0 540,700 7,500395,99
63 0 597,318 7,500445,74
64 0 659,865 7,500500,70
65 0 728,962 7,500561,41

The early investor contributed $107,500 less than the late investor, but outperformed the late investor by over $167,000. Let time work to your benefit!

There is also an insurance aspect here that is not shown by the pure numbers. The early investor is protected should he become disabled or a bad economy limit his earning potential. He already has his money doing the work for him.



About the Author
For twenty years Adam Starchild has been writing books about these subjects, and they are published by a variety of publishers. They are available in many bookstores and public libraries.

Copyright © 1995 by Adam Starchild
The Investor's Library has reprinted this copyrighted article with the permission of the author.


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