It Doesn't Pay to Delay

Clients often ask me if they should wait for rates to increase before they lock in an investment. What I tell them is this – in most instances, taking action is better than NOT taking action.

The power of compound interest

With compound interest, you earn interest on your initial deposit in addition to the accumulated interest from previous periods. This allows your money to grow. Combine this compounding with additional time, and you are taking advantage of your investments. The longer you wait to get started, the more you could potentially be losing in returns.

It doesn't pay to delay

Consider this example that shows the difference of saving $50 per month beginning at age 20 versus waiting until you are 30. Saving that small amount for 10 additional years produces a significantly greater savings by age 65. This is a basic example of the power of compound interest plus time. Now consider if this was $100 or $200 per month and a higher rate of return that comes with investing in stocks, bonds, or mutual funds. Taking action now may yield you much bigger returns than sitting on the sidelines.

Age 20 Years Old 30 Years Old
Monthly Investment $50 $50
Interest Rate 4.00% 4.00%
Value at Age 65 $75,725 $45,839
Figures quoted are for illustrative purposes only and are not necessarily indicative of the past or future results of any specific investment.

How do I decide?

Don’t lose another day. As the Osaic Institutions, Inc. financial advisor at 1st United Credit Union, I can assist you with managing your risks and achieving your wealth-building goals. Let’s talk - I am available by phone or you can schedule an appointment.

This information brought to you by:

Rahil Machiwalla, Financial Advisor
Rahil Machiwalla, Osaic Institutions, Inc.*
Financial Advisor
(925) 598-4718
CA Insurance Number: 0G20361

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*Investment and insurance products and services are offered through Osaic Institutions, Inc., Member FINRA/SIPC. Osaic Institutions does insurance business in California as Osaic Institutions Insurance Agency. CA Agency License #OH30186. Osaic Institutions and 1st United Credit Union are not affiliated. Products and services made available through Osaic Institutions are not insured by the NCUA or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any credit union or credit union affiliate. These products are subject to investment risk, including the possible loss of value.