COST OF PROCRASTINATION
The pictures below illustrate the cause of losses if you delay your action to invest. Assuming the initial investment to open an account is RM1,000.00. We compare a person of age 30 with annual investment of RM5000 every year until age 55 and a person of age 40 with annual investment of RM5000 every year until age 55 or with annual investment of RM10,000 every year until age 55. You can see that even the person of age 40 increases his investment amount double, he still could not get what the person of age 30 would get when his age reaches 55.
At age 55, assuming with 10% return per year (compounded), with the same investment amount of RM5,000 every year:-
The person age 30 will get RM502,570.00 (Figure A)
The person age 40 will get RM163,039.66 (Figure B)
The person age 40 with RM10,000 yearly contribution will get RM321,902.07 (Figure C) also less than the person age 30 because he started late even though he increased his investment amount !
The cost of procrastination when compare with the person age 30 for:-
The person age 40 with the same amount of annual investment is RM502,570.00 - RM163,039.66 = RM339,530.34
Think about it !
At age 55, assuming with 10% return per year (compounded), with the same investment amount of RM5,000 every year:-
The person age 30 will get RM502,570.00 (Figure A)
The person age 40 will get RM163,039.66 (Figure B)
The person age 40 with RM10,000 yearly contribution will get RM321,902.07 (Figure C) also less than the person age 30 because he started late even though he increased his investment amount !
The cost of procrastination when compare with the person age 30 for:-
The person age 40 with the same amount of annual investment is RM502,570.00 - RM163,039.66 = RM339,530.34
Think about it !
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