The Cost of Procrastination

The Cost of Procrastination

June 16, 2021

When investing for retirement and other long-term goals, you want to put time on your side. The sooner you begin investing the longer your money can work for you. But it’s easy to procrastinate. Let’s take a look at when procrastination can cost you.

Mary & Tom each decided to invest $250,000 into a retirement account. When Mary turns 50, she starts contributing $25,000 a year to an account that earns a hypothetical 6%. After 10 years, she stops making annual payments. Tom, on the other hand, puts off his investing program. Finally at age 60, he begins setting aside $25,000 a year into an account that earns a hypothetical 6%.

Though both have contributed equal amounts, Mary has the magic of compound interest working for her. When they both reach age 70, Mary’s accounts balance is $590,120, nearly twice the size of Tom’s at $329,520.

Procrastinating can be costly. And as Tom learned, when you get a late start, it can be difficult to make up for lost time. Call us today and let’s get started now!


This hypothetical example is for illustration purposes only and is not intended to be representative of actual results or any specific investment, which will fluctuate in value. The determinations made by this example are not guarantees or projections, and no taxes or fees/expenses are included in the calculations which would reduce the figures shown. Please keep in mind that it is possible to lose money by investing and actual results will vary.

This is meant for educational purposes only.  It should not be considered investment advice, nor does it constitute a recommendation to take a particular course of action. Please consult with a financial professional regarding your personal situation prior to making any financial related decisions.  (06/21)