Time can be your ally or enemy in investing.

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Time is the most expensive commodity nowadays, when you lose it, you cannot recover it. I hear a lot of stories of a breadwinner goes to abroad and provides well to his family but it turned out that his family went broken. His wife went to another man and his children were not taken care by his wife. The reason why he left his family is to provide for their future but it turned out that his family was  destroyed because of the time he did not spend with them. Risks are always there, we cannot tell what will happen in the future.  Time can be your ally or your enemy, depends on how you use it.

As a Financial Literacy Advocate, I always tell that time is important in achieving your financial goals in the future. I highly emphasize investing to young people. If you are retiring next year and you will invest in a financial instrument today that will make your money grow for your retirement is too late, time is against you. While if you are preparing now for your retirement for the next 20 years,time will be your ally in achieving your retirement comfortably. Most of us don’t realize that investing as early as possible is important even starting small. A lot of us always think that we will invest if our income increases but when income increases spending increases as well then investing will be delayed until time passes and investing has not started yet.

Let me show you 3 types of people when it comes to investing.

Mr. Invest now at age 30 invests Ph20,000 per year  for the next 10 years with 10% annual compound interest.


Mr. Catch-up started investing Ph20,000.00 at age 34 until age 60 with 10% annual compound interest.catch-up

Mr. Wait longer invested Ph50,000 at age 40 until age 50 with 10% annual compound interest.


Now, who is the winner for these 3 types of investors?


Clearly that Mr. Invest Now has a lot of advantages than Mr. Catch up and Mr. Wait Longer because he only invested a total of Ph220,000.00 early in his life but look at the ending value of investment, he earns more compared to the two investors.

Knowing this that investing early in our life can give us more time to grow our money in a financial instrument that we choose for our financial goals in the future and it’s a lot cheaper compared investing later in our life. I hope that time will be your ally not your enemy. A lot of people wish for better life but wise people study, plan and act to have better life.

Reference: http://fitzvillafuerte.com/the-story-of-mr-invest-now-mr-catch-up-and-mr-wait-longer.html

To know more about Financial Literacy, you may reach

Archie M. Yuki

Associate Unit Manager

Licensed Financial Advisor

The Insular Life Assurance Ltd., Co.

Mobile Number: 0917-5769607.

E-mail address: archieyuki30@gmail.com

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