Albert Einstein once said, “Compound interest is the eighth wonder of the world. He who understands it, earns it… he who doesn’t, pays it.”

As your financial advisers, we see firsthand how laying down the brickwork early can really structure your financial future. Whether you’re a young professional just beginning your career or a parent thinking about your child’s future, the earlier you start investing, the more time your money must grow.

Start Early. Grow More.

Morningstar’s research shows that to reach $1 million by age 65, the amount you need to save each month varies dramatically depending on when you start. The younger you are, the more growth comes from compounding—not just your contributions.

The graph below (taken from Morningstar’s article) illustrates this beautifully:

  • Left graph: Monthly savings needed at different starting ages.
  • Right graph: How much of your final wealth comes from your own contributions vs. investment growth. The earlier you start, the more your investments work for you 
Source

The image represents the monthly savings necessary should the investor earn 7% per annum from a hypothetical asset. No adjustment has been made to account for inflation, fees, transaction costs, or taxes.

What can you do today?

  • Start small, but start now.
  • Seek financial advice to build a strategy that suits your goals and timeline.
  • Think long-term and let compounding do the heavy lifting.

If you’re ready to explore how investing early can benefit you or your family, please reach out to Rikki Juzwin or Grant McWhinney from BKM Wealth. Your future self will thank you.

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