Fresh Financial Perspective: Investing

For most of us, the money that we invest while we are working will be our way of affording to retire comfortably. That means investing deserves our serious consideration. Take a look at what consistent investing in your future can do. 

Article Highlights

  • Comparison of three investors who vary in length of time invested and the amount invested
  • Time is on your side – take advantage of that time

Meet our three investors: Adam, Brittany, and Chris who plan to retire at 60 years old. Let’s assume that they all earn 7% compounded interest per year on the money that they invest.

  • Adam starts investing at age 25, saving $100 per month for 35 years
  • Brittany starts at 40, saving $200 per month for 20 years
  • Chris starts at 50, saving $500 per month for 10 years

Here’s where the earlier you get your money working for you, the more compounding interest can work in your favor.


When Adam is ready to retire at 60, he will have paid $42,000 ($100 x 12 months x 35 years) of his own money toward his retirement. However due to compounding interest, his total account balance will be $165,884.25. This means that $123,884.25 are gains from the investment.


Brittany didn’t start investing until age 40 but thought if she doubled her savings amount to $200 a month it would equal out in the end. In this case, Brittany will have ended up investing $48,000 ($200 x 12 months x 20 years) of her own money and only have $98,389.18 when she was ready to retire at 60. Although she saved twice as much as Adam, she had less time for the compounding interest to work to her advantage.


You can almost guess what will happen to Chris. He diligently invested $500 per month for 10 years thinking he could make up for lost time. However, when Chris reaches retirement at age 60 he will have invested $60,000 ($500 x 12 months x 10 years) of his own money and his investment will only be $82,898.69. The gains are not nearly as large as he did not have time on his side.

Investments Over Time

There is no better way to illustrate the power of starting now – even if the investment doesn’t seem like much at first. A good rule of thumb is to save at least 10% of your gross income. If you can’t afford that, invest what you can afford then work yourself up in time. Your future self will thank you.

Courtney Hunsberger 
Financial Planner
4 Village Park Drive, Suite 170 
Grove City, PA 16127

All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.

These examples are hypothetical only, and do not represent the actual performance of any particular investments. Investments in securities do not offer a fixed rate of return. Principal, yield and/or share price will fluctuate with changes in market conditions and when sold or redeemed, you may receive more or less than originally invested.

Registered Representative offering securities through Cetera Advisor Networks LLC, member FINRA/SIPC. Advisory services offered through Vicus Capital Inc., a Registered Investment Advisor. Cetera Advisor Networks LLC is under separate ownership from any other named entity.