We are often asked by younger investors what they should be doing in their financial lives. They often look disappointed by our simple advice to “Save as much as you can!” We also provide guidance on how to make saving a habit, and life hacks to save your hard earned money in a manner that doesn’t give you an opportunity to spend it. The overarching theme is to start building their savings. The charts and animation below try to illustrate the importance of saving early in life.

 

The animation below highlights the wonders of compounding. For an investor who starts saving only $250 per month in their twenties, at age 65, 56% of their $1.3mm in savings will be the compounded growth of money they saved in their twenties.

 

 

The longer you are invested, the higher your probability of a positive return.

 

 

While the average annual return for the S&P500 is about 10%, actual return is rarely 10%.

 

 

Please contact me for a more detailed discussion.

 

Delli (delli@cibc.com)

 

Disclaimers:

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