Value of Time

Part 1 of the 4 Part Blog Series:"Setting Up Your Children for Success"

By W. Joseph Irish, CPA/PFS

During the holidays, it is our nature to reflect on the year that just passed and make resolutions for the future. As an advisor who now has the benefit of hindsight, there is nothing more powerful in investing than the power of time. In this time where pensions are no longer the norm and counting on social security as a retirement income source is not guaranteed, investing early becomes even more imperative. So one of my goals for this year (resolution if you must), is to start this year by trying to get the message to as many young investors that the sooner you start investing for your future self the better.

The following illustration shows how investing early can give you a huge jumpstart on your future wealth.

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*Both scenarios assume a 6.75% return.

As you can see, even those who start to invest at a later stage and invest more to make up for lost time cannot make up the difference than those who started early. The single best way to get started investing if you are employed is to immediately sign up for your company sponsored retirement plan. At a minimum, invest as much as the company match. If you are not yet eligible for a company retirement plan or your company does not sponsor a plan, you should look into opening a Traditional IRA or Roth IRA.

Part 2 - Saving on a Budget


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W. Joseph Irish earned a bachelor’s degree in business administration from Western Michigan University with a major in accounting and is a Certified Public Accountant (CPA) and holds a Personal Financial Specialist (PFS) designation from the American Institute of Certified Public Accountants (AICPA). Prior to joining Siena, Joe spent 15 years as Chief Financial Officer and 9 years as shareholder at a successful logistics firm that specializes in rail transportation logistics.