While it’s never too late to start investing, starting out in 40s may just be a tad late for an investing habit. The reasons are multiple. You are much closer to retirement and there's lesser time on hand to save for second innings. Panic might set in. You are also at the peak of domestic scene - high living expenses, children's higher education, hefty EMIs could spare little for investments.
In the previous blogs, we have illustrated how starting in 20s scores over starting in 30s. If that's not enough, find out about our friend who starts to invest in 40s and his corpus ain't going to be an enviable one.
Meet Rudra. He works in financial services sector and recently got promoted as a Vice President. Together with his wife he decided to start investing since they will be hitting retirement in couple of decades. Since he has huge fixed monthly expenses, he is left with a very small amount to save. Rudra pledges to save one day’s salary every month in equity mutual funds towards his retirement goal.
As you can gauge from the above table, Rudra started to invest with more than double the amount as compared to Akshay and 5 times the amount Rahul had started his investing journey with. But in this case also, delaying investing decision by few more years made the difference even wider between their accumulated wealth at the end.
The case studies clearly illustrate the need to start early. With time, investments can grow enormously and set us free.
To conclude, we reiterate from our previous blogs, don’t stop at yourself and make everyone around you aware about the benefits of investing early and regularly. Last quarter saw some big withdrawals by Foreign Institutional Investors but the markets are at all-time highs. This is due to the power of monthly SIPs flowing into the markets##. Imagine the strength of markets and India therefore, if the 2% goes upto 10% also!
Towards a wealthier you, society and country, let’s pledge a day of salary for our future!
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.