“How did it get so late so soon?” — Dr. Seuss

Dr. Seuss’s simple but powerful words continue to resonate today, even in the context of planning for a financially secure future. Because when you get right down to it, the younger you are, the more potential you have to gain, by taking advantage of the time ahead of you.

For example: Let’s say you started investing $100 per month. Assume over time you earn an average of 6% interest per year.

The chart below shows how much money you’d have at age 65 given the age you begin saving:

Age 30 35 40 45 50 55
Amount Invested $42,000 $36,000 $30,000 $24,000 $18,000 $12,000
Balance at age 65 $143,283 $101,053 $69,745 $46,535 $29,327 $16,570


Starting younger allows you to make more contributions, but it also allows your money to grow more by compounding interest. The word ‘compounding’ describes what happens when your initial investment earns money and this amount is reinvested generating even more earnings.  Compound interest essentially means “interest on the interest”. It’s a positive snowball effect!

Dr. Seuss would probably agree as well that it’s never too early to start saving. Shelley Hertel, the financial advisor here at Credit Union of Denver, is available to discuss how to get started.  She offers a free consultation and is your resource for all investing and retirement planning needs. Call 303.239.1139 to schedule your appointment today!

This is a hypothetical example intended for illustrative purposes only and does not represent the performance of an actual investment. Your results will vary. Because of the possibility of human or mechanical error by DST Systems, Inc. or its sources, neither DST Systems, Inc. nor its sources guarantees the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. In no event shall DST Systems, Inc. be liable for any indirect, special or consequential damages in connection with subscriber’s or others’ use of the content. © 2018 DST Systems, Inc. Reproduction in whole or in part prohibited, except by permission. All rights reserved. Not responsible for any errors or omissions.
Article provided by Shelley Hertel with LPL Financial.