Young Investors – “We can have our avocado toast and eat it, too”
Working with the next generation of investors is a big part of Byrne Financial Freedoms focus. While working with our young investors we stress the importance of basic financial concepts, education, and time. Time and the power of compound interest is the largest tool our young investors have, to begin working towards their financial future. Early on we work with these clients to establish and understand the benefits of their first retirement accounts, 401k, 403b. But we also recognize it’s not all about the long game. Short term goals like purchasing your first car or home, TRAVELING, planning for a child and everything in between is just as important.
Time is your greatest asset—use it!
Thanks to compound interest, young investors stand to gain much from retirement investing at an early age. Assuming a 7% rate of return, a 25-year old who invests $200 monthly until age 70 will have grown her investment to $762,944. If they waited until age 35, investing twice as much monthly, or age 45, quadrupling their monthly investment, they would not be able to achieve the same results as if they had started investing more modestly at age 25.
This is a hypothetical example and is not representative of any specific situation. Your results will vary. The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing. This hypothetical illustration assumes a 7% rate of return; this does not reflect the performance of any particular investment.
25-Year Old’s Can Save Much Less and Still End up With More!