Tom Meaglia photo

Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

March/April 2018

Time and Money

Time and Money

Time never matters more than when saving for a long-term goal. Retirement is most people’s longest-term goal. Here’s why time matters.


Start Early


Try the compound interest calculator at the Security and Exchange Commission’s
www.investor.gov. Input $0 for a starting balance and a monthly contribution of $300 per month, which is $3,600 annually. Then type in a 6% interest rate compounded monthly and 40 years for how long you’ll contribute the same amount.


Over 40 years you will have contributed $144,000 in this hypothetical example, but your balance will have grown to $597,447. That’s more than four times your contributions, showing the power of time and compounding.


Lost Time


Now let’s say you believe you have plenty of time to save for retirement. After all, you have to pay off school loans and save up for a family and first home right now. So you decide to wait 20 years, but you’ll double contributions to $600 monthly for the next 20. Add up your contributions and you’ll have the same total as in the first example: $144,000.
The result, however, is not the same. In the second hypothetical example, your balance would more than double to $277,225. That’s still less than half of what you would have saved in the first example. Clearly, time is crucial when saving for a long-term goal.


Early is Better


Look at one final example. Contribute just $100 a month. That’s the cost of a good restaurant meal for two and a couple of designer cups of coffee. Input the same numbers used in the previous examples: 6%, $0 balance and 40 years.


Over 40 years, you would have contributed a total of $48,000. Despite contributing one-third of the total cited in the second example, you will have accumulated over $199,000.


Begin Today


Clearly, time can have an outsized impact on how much you accumulate in the long term. So if you don’t contribute to an IRA or 401(k) plan, consider starting today. As difficult as imagining your future might be, it can be financially rewarding when you use time to your advantage.


SUBSCRIBE

Enter your Name and Email address to get
the newsletter delivered to your inbox.

Please include name of person that directed you to my online newsletter so I can thank them personally.


CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
Meaglia Financial Consulting and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.