There a number of "Jack and Jill" investment scenarios out there. Here is one on the influence of time and results.
Two twins, Jack and Jill, make a decision at the age of 25. Jill would invest $1200 a year at 6% interest until she is 65. Jack would spend his money without investing it until he is 45. Then he would start to invest at 6% interest, but he will invest twice as much, $2400 a year, to catch up.
On their 65th birthday Jill will have $185,714 in her portfolio and Jack will have $88,285 even though they each invested $48,000.
By waiting until the age of 45 to start investing, Jack’s portfolio will be $97,429 less than Jill’s portfolio.
(From Kanwal Sarai's Simplyinvesting)
Two twins, Jack and Jill, make a decision at the age of 25. Jill would invest $1200 a year at 6% interest until she is 65. Jack would spend his money without investing it until he is 45. Then he would start to invest at 6% interest, but he will invest twice as much, $2400 a year, to catch up.
On their 65th birthday Jill will have $185,714 in her portfolio and Jack will have $88,285 even though they each invested $48,000.
By waiting until the age of 45 to start investing, Jack’s portfolio will be $97,429 less than Jill’s portfolio.
(From Kanwal Sarai's Simplyinvesting)
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