Looking back...
The Reality
One chart with the power of persuasion.
Smart Joe
Smart Joe, always makes an effort to save up money through his part time work. Joe saves up £250 a month and invest passively in the stocks market £3,000 a year since 21. When he turns 30, he has other priorities such as buying a house, marriage, kids and perhaps starts a business with his savings. He no longer needs to put more cash after 30.
Chill Dan
Chill Dan, is a slightly late bloomer. He always believes he needs to get a good job before investing financially. All investments can wait at later stage in life. So he only officially started investing when he turn 31 working as a project engineer in a respectable Oil and Gas company. Very successful and respectable person in the industry.

Results
At 31 Joe already have his wealth grown up to £57K with only £30k invested. At Age 55, Joe's wealth have grown to more than half a million! He already stop investing since age 30. On the other hand Dan is still topping up his investment yearly trying to catch Joe. At 55, he invested £75,000 and his overall portfolio is still sitting around £320k, which is £200k less than Joe!!! NOTE: In the calculations, I ignored financial crisis at various stages. This is simple because both character are investing in the same investment vehicle. A 10% assumption is very optimistic. Well do you know the S&P500 index have average 9-10% in the last 90 years
Conclusion
Many of us have missed this opportunity. We wished we could turn back time and drop £10k in Apple shares. However, you should not allow your kids to miss this opportunity. Read this article on how you can start saving for your kids in my Kids Investment series. I have personally started investment for my kids since they were 2 years old. Along the way, I will be educating them about amazing maths of compounding interest over time.
Honestly it is a-lot easier to invest for your children as a young age. It is far easier to select companies to invest in which would hopefully be around for the next 15-25 years. I already can easily name 3 (Disney, JNJ, Unilever). Can you name three good companies and leave your comments below for discussion?
From,


Family Finance Made Simple
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