Don't wait to start saving for your goal. The importance of not waiting is illustrated by the following:
Example
Rudi Janga, a 28-year-old, has gone through all the steps suggested in this planning section. Based on his investigations, Rudi is seriously considering making a yearly investment of NAF 2,000 in a mutual fund that invests primarily in small, growth company stocks.
Assuming Rudi will begin his annual NAF 2,000 contributions this year on his 29th birthday, the broker's projections show the following:
Projected Savings Growth
| Age | ||
| 30 | NAF 4,240 | |
| 35 | NAF 16,230 | |
| 40 | NAF 41,309 | |
| 45 | NAF 85,507 | |
| 50 | NAF 163,397 | |
| 55 | NAF 300,679 | |
| 60 | NAF 542,604 | |
| 64 | NAF 863,357 | |
| 65 | NAF 968,659 |
Looking at the above example, Rudi will have something approaching NAF 1 million (NAF 968,959) at retirement by contributing NAF 2,000 each year beginning at age 29. But if he waits just one year later to begin his investment plan, and still retires at 65, he will have NAF 863,357, which is NAF 105,602 less!
Examine each element of your plan such as investment risk profile, investing, retirement goals, and estate issues and take action to make these plans a reality.
Tip
Remember, as bad as living with an outdated plan is, dying with an outdated plan may be worse, since your family may no longer be able to correct the problem.
Tip
Change is neither bad nor good....it's simply inevitable. Plan on it! And plan for it!
