Have you ever waited too long to do something and suffered the consequences? Maybe you put off renewing your car taxes, only to get a ticket for an expired registration…or what about waiting just a little too long to fill that gas tank, only to run out of gas before you can make it to a fill-up station?
Procrastination can cause many missed opportunities! And this can cost us!
Procrastinators can sabotage themselves. The paths they choose can hurt their performance and put obstacles into their paths.
But what does this have to do with financial planning?
Problems with procrastination can be particularly painful, and costly, when it comes to investments and financial decisions.
Here is an illustration:
Let’s look at two individuals we will call Sam and Patty. Let’s say they each have $100,000 to invest. Sam is ready to go RIGHT NOW! He immediately beings depositing $10,000 a year into an account that earns a 6% rate of return. After 10 years he stops making deposits. Patty on the other hand, procrastinates. She meant to meet with her financial advisor but other things kept getting in the way. Years go by… Finally 10 years after Sam started investing, Patty finally starts to invest that $10,000 per year into an account that also earns a 6% rate of return.
Both Sam and Patty have invested $100,000, but at the end of 20 years Sam has more than $280,000, while Patty only has a little more than $150,000. Sam is significantly wealthier because his account has had more time for the investment returns to compound.
Regardless of the amount of money you may have to invest, the point is to take action NOW! Don’t wait! Every day that you wait, you are potentially losing money that could be used for your retirement, or money that could be left as a legacy to your children and grandchildren.
The first step towards getting started with your investment is to contact a financial advisor and set up a financial review.
At Cornerstone we have dozens of agents who will do a free financial review in the comfort of your home! After fully analyzing your situation, they will be able to point you in the best direction to start investing, or even help you modify your current investments to better meet your needs.
Don’t procrastinate! Contact us today!