Time is the most powerful resource you have

My dad always told me the best time to plant a tree is 30 years ago and the second-best time is today. This saying works well in the world of financial planning too. The longer your time horizon the greater your ability to build wealth. However, that only works if you take the first step.

One of the main reasons time is so important is the power of compounding interest. Albert Einstein is credited with calling it the most powerful force in the universe. As an example, let's compare two hypothetical Savers. Sally Saver invests $6,000 a year starting at age 25 but stops after 10 years. Steve Saver starts at 35 and invests $6,000 a year for the next 30 years. If they both average 7% annual returns and retire at age 65 Sally will have almost $70,000 more than Steve despite having contributed $120,000 less than Steve did.

Getting started now gives you the most amount of time for your growth to compound. A longer time horizon also allows you to pursue higher returns by being more aggressive in your investments.

But what if someone feels like time isn't on their side anymore? For that person we need to look at how to build in additional time for their investments to work.

What if we came up with a plan that used steady income combined with guaranteed investments to protect all your cash flow needs for the next 10 years? That would unlock the power of long term investing again. Finding the right balance and coordinating with your budget is what allows us to achieve all your goals both today and 20 years from now.

Whether you feel like you've got all the time in the world or you can hear the retirement clock ticking, now is still the best time to take action. If you'd like help with the first step in putting the power of time on your side, call me. You might like working with me because I'm committed to placing you in a position of power.

Investments contain the risk of loss. Returns used in the examples are for educational purposes and are not guarantees of performance. Before implementing any investment strategy, you should consult with an expert to look at the details in your financial situation.