The Cost of Waiting
Time is your most powerful asset in investing. See exactly how much money you lose by delaying your start date.
1 Your Investment Plan
2 The Price of Procrastination
Every day you wait costs you $0 in future wealth.
Why Time Beats Money
The mathematics of compound growth
Compound interest is often called the "eighth wonder of the world"—a phrase attributed to Albert Einstein. The money you invest early doesn't just grow linearly; it grows exponentially because your returns earn returns on themselves.
When you delay investing, you don't just lose the contributions you missed. You lose the decades of compounding on those contributions. This is why "catching up" is so expensive—you have to contribute significantly more later to match what a small amount could have done earlier.
The Rule of 72
Divide 72 by your annual return rate to see how many years it takes to double your money. At an 8% return, your money doubles every ~9 years. Waiting 9 years to start means you miss an entire doubling cycle—cutting your final wealth in half.
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Frequently Asked Questions
Does waiting just one year really make a difference?
Yes. In a 7% market, delaying a $10,000 investment by just one year can cost you over $76,000 in lost growth over a 30-year career. The "first" dollars you invest always work the hardest.
Is it too late to start if I'm over 40?
No, but you must be more aggressive. You can't rely as much on time, so you must rely on contribution volume (saving more) and catch-up contributions (extra limits allowed by the IRS for ages 50+).
Should I wait for the market to crash before investing?
Historically, no. Research shows that 'Time in the Market' beats 'Timing the Market.' Missing just the 10 best trading days over a 20-year period can cut your returns in half.
How does inflation affect the cost of waiting?
Inflation makes waiting even more expensive. If cash sits in a savings account earning 1% while inflation is 3%, you are losing purchasing power every day. Investing is the primary shield against inflation.
Can I just save double later to make up for it?
It is mathematically very difficult. To match the wealth of someone who started saving $500/mo at age 25, a person starting at age 45 would need to save roughly $2,500/mo to catch up.
What is the 'Rule of 72'?
It’s a shortcut to calculate how long it takes to double your money. Divide 72 by your interest rate. At a 7% return, your money doubles every 10.2 years. If you wait 10 years to start, you miss an entire "doubling cycle."