Since 1992
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By Jac M. Arbour
Certified Financial Planner
Which would you rather have — a million dollars today or the result of one penny doubling every day for the next 30 days? If you chose the penny, good for you!
It would be worth about $1.3M on the 28th day and $5,368.709.12 on the 30th day.
In my opinion, there is no factor that has a more profound effect on the value of money than time. Compound interest was once said to be the eighth wonder of the world, and when considering the previous example, you might agree.
As an advisor in the 401K space, I hear many different reasons about why people choose to participate or not participate in their employer’s plan. With younger people, it is always a goal to have them understand the power of time and compound interest. It doesn’t take a lot of money from one’s paycheck each week (even $10/week can make a difference) to build something significant for down the road.
Whether you end up with $100,000 or $5 million at retirement, you’ll be glad you did it, and you’ll be even happier if you start early.
See you next month!
Jac Arbour is a certified financial planner and chartered financial consultant, and is president of J.M. Arbour Wealth Management in Hallowell.
