Making Cents Blog

The Power of Saving Early

It's never too early to meet with a CFS* Investment Advisor to discuss your financial goalsMany people think that they need a large sum of money to invest in order to make an impact. The reality is that a disciplined investment program, started early in your career is the real key to long-term wealth.

Let’s assume a person was to save $2,000 a year from age 20 until her or she was 29 and stopped investing a single cent after that. If this individual earned an average of 8% on his or her investments, by age 65 the net earnings would equal $428,377.63.

Now let’s assume that another individual waits until he or she were more established in his or her career. If this individual starts 10 years later (at 30) and makes contributions of $2,000 a year until age 64 (that’s 35 years) earning an average of 8%, the balance at 65 would be $344,633.61.**

Our first saver invested $50,000 less than our second saver and ended up with $83,744.02 more. That is a total swing of $133,744.02 ($50,000 less invested plus $83,744.02 more at age 65).  If our first saver stayed with his or her plan and continued to invest $2,000 per year until age 64 the total balance would be nearly $775,000 at age 65.

Starting early and sticking with your plan are the keys to long-term wealth. Contact an Alliance Investment Advisor, available through CFS* today to get started on your path toward long-term wealth.

For California members, Quang Phan can be reached at 408.979.2478. For members who reside in North Carolina, James Gregory can be reached at 910.793.2232.  To read more information about our CFS* Investment Advisors, please click here.



*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. Alliance Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members. 

**The figures above are for illustrative purposes only and are not necessarily indicative of past or future results of any specific investment. They may or may not include consideration of the time value of money, inflation, fluctuation in principal, or in may instances, taxes.

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