I read an article recently on how the life cycle investment timeline of a person usually goes. In summary, there are three stages:
Growth Period (Age 20 - 35) - Stage where we accumulate assets to use as capital for future investments.
Consolidation Period (Age 35 - 55) - Includes paying off debt, shifting on investments that fit our risk appetite, more stable earnings and retirement plans.
Retirement and Spending Period (Age 55 and up) - All life-time earnings are accumulated and have the ability to spend for the remaining years of your life.
Imagine if you can start your investment timeline much earlier. Perhaps during college or even high school? You can actually open investment accounts today for as low as P 5,000. If you started investing at 16 and assuming your investment grows 5% annually, then you will have P27,580 by the time you're 50.
Not impressed? Let's assume you started at 50,000 and this time, your annual return is 10%, which is common for average investors. After 35 years, you'll have P 1.4 million or 28 times more than you first had! Of course there are risks of losing money, but if you're truly motivated and willing to learn, your investment can also perform much better in a shorter period!
I started to learn about investing when I was 19, but I have only started actually doing it at 23 when I opened a time deposit account. It takes time, and courage, but everything would be worth it once you realize you'll be much better financially over time. Now I'm 26 and in the accumulation stage. My investment plan is to save and be able to consolidate all my assets by the time I reach 40. If all goes well, I'll be able to retire by then and spend the returns on my investment.
Contrary to what other people may want you to believe, being rich is not easy. It takes a lot of hard work and effort. All the rich people you've seen or heard of have all devoted time to learn and improve on their craft.
The good news is there's nobody that can stop you from doing just that.
You might also like:
Choosing the Right Investments
Bulls and Bears
Trading vs. Investing
Not impressed? Let's assume you started at 50,000 and this time, your annual return is 10%, which is common for average investors. After 35 years, you'll have P 1.4 million or 28 times more than you first had! Of course there are risks of losing money, but if you're truly motivated and willing to learn, your investment can also perform much better in a shorter period!
I started to learn about investing when I was 19, but I have only started actually doing it at 23 when I opened a time deposit account. It takes time, and courage, but everything would be worth it once you realize you'll be much better financially over time. Now I'm 26 and in the accumulation stage. My investment plan is to save and be able to consolidate all my assets by the time I reach 40. If all goes well, I'll be able to retire by then and spend the returns on my investment.
The good news is there's nobody that can stop you from doing just that.
You might also like:
Choosing the Right Investments
Bulls and Bears
Trading vs. Investing