This is a story of Jack and Jill
Jill starts investing when she’s 20. She invests R1 000,00 per month with an annual escalation of 10%. She continues investing until she’s 30. She then stops investing and collects her investment when she retires, at 60.
Jack only starts saving at 30 years of age, when Jill stops. He also saves R1 000,00 per month with an annual escalation of 10%. He continues saving until he is 60 and collects his investment when he retires.
Who gets the bigger payout at retirement?
Jill gets R 4 066 666,75 while Jack gets R 2 260 488,00.
I'm a financial adviser looking to develop long term relationships with my clients.