Cost of Waiting to Invest
What does delaying investing by 1, 2, or 5 years actually cost you in final dollars? The answer is almost always more than you expect.
Your Situation
$
$
Assumptions
%
%
Start Today: Final Value
$1,453,747
37 years of investing
Start Today: Real Value
$486,980
inflation-adjusted (3%/yr)
Cost of Waiting 5 Years
$471,221
final value drops to $982,526
Average Cost Per Year of Delay
$97,116
across all delay scenarios
Compound growth is exponential. The first dollars you invest have far more time to compound than the last ones. A single year of delay at age 25 costs more than a year of delay at age 45.
Impact of Delaying Investment Start
| Start Age | Years Investing | Total Contributed | Final Value | Cost vs. Starting Now | Cost Per Year Delayed |
|---|---|---|---|---|---|
| 28 (today) | 37 yrs | $227,000 | $1,453,747 | — | — |
| 29 | 36 yrs | $221,000 | $1,343,908 | -$109,838 | -$109,838 |
| 30 | 35 yrs | $215,000 | $1,242,488 | -$211,259 | -$105,629 |
| 33 | 32 yrs | $197,000 | $982,526 | -$471,221 | -$94,244 |
| 38 | 27 yrs | $167,000 | $666,237 | -$787,510 | -$78,751 |