When should you start investing? As soon as you can – with your first payroll if possible. That’s not just our opinion – the statistics back us up.
Time is your best ally when it comes to planning your retirement thanks to interest rates, which is the outcome of reinvesting the profits from your investments or simply not taking the money out.
The story of Juan and Pedro
Pedro: He started investing with his first payroll and his savings at the age of 23. He invested 1,000 euros to start off with, and then paid in 200 euros per month, or 2,400 euros per year. He kept saving until he was 33 years old. From that point, he didn’t make any more contributions, just left the money invested.
Juan: He started his savings plan at the age of 33. He also invested 1,000 euros upfront and then 2,400 euros per year. He kept his contributions going until retirement.
Both had a yield of 8% per year.
Which of the two will have more capital on retirement?