It’s said the early bird gets the worm. This adage is best suited to the world of investing where – the earlier you do your retirement planning the greater will be your return on investment.
Take the case of Suresh and Ramesh, both of the same age.
Suresh starts investing 5k per month from his 25th birthday and continues to invest the same till he turns 32 and stops further investment.
Ramesh begins at the age of 32 and invests the same amount – 5k. However he knows he has begun late, so keeps investing till he turns 60.
Despite doing so, he accumulates only 1.2 cr i.e. 32 lakh less than Suresh!
Suresh invests only 4.2 lakh over 7 years and gets back 1.52 cr.
Ramesh invests 16.8 lakh over 28 years and gets back only 1.2 cr.
Feel you have missed the bus?
Start investing today instead of five or ten years down the line and increase your investment by 5-10% every year.
