Slow and Steady!

It can be difficult to maintain your commitment to investing when your investment values seem to be growing slowly. But even if you need to accumulate large sums of money for retirement or other goals, you need to maintain the discipline to follow two basic investment principles:

1. Invest regularly and
2. Invest for a long time period.

A slow and steady strategy will help you achieve your financial goals.

For example, consider a 30-year-old man who wants to accumulate $1,000,000 before income taxes in his 401(k) plan by the time he reaches age 65. While that might seem like a significant amount, he’ll reach that goal by saving $5,373 annually and earning 8 percent on his contributions. Along the way, it might not seem like he’s making much progress:

  • He’ll only have $34,043 after five years.
  • After 10 years, he’ll have $84,063 ? still well below his goal.
  • After 25 years, with just 10 years to go, he’ll have $424,222. That’s a significant sum, but still only 42 percent of his goal.
  • But if he maintains his commitment and keeps investing those entire 35 years, his balance will grow to $1,000,000.

The power of compounding earnings typically means that most of your investments’ growth will occur in the last few years of your investment period.

So don’t abandon your goals because it seems like you’re not making much progress. Just remember ? the slow and steady investor tends to reach his or her financial goals. Contact your investment adviser if you’d like an analysis of your portfolio to determine whether you are on track to achieving your financial goals.

 

About Deborah Laemmerhirt

Let me assist you in finding everything you need to know about buying or selling a home! As the preeminent real estate professional in my community, I am dedicated to providing the finest service available while breaking new ground. Because the real estate industry is becoming more sophisticated and challenging every day, you need a professional that understands the industry and is positioned to stay ahead of the game. I go the extra mile to help you achieve your goals. That’s why I constantly research the home, market and estate values so your home is priced effectively from day one. I also make sure the public knows your home is for sale by using innovative marketing techniques to attract potential buyers. As an Internet-savvy real estate representative in Connecticut, I’ve had the opportunity to help many home buyers find their ideal homes and many sellers obtain top dollar for their homes. Buying or selling a home is one of the largest financial transactions that most people ever undertake, so I will help you through every step of the process. My goal is to make your home selling or buying experience as easy and enjoyable as possible. My services include: Explaining the home selling and buying process thoroughly Diligently selecting homes that meets your criteria Pricing your home correctly and implementing a unique yet proven marketing plan Negotiating on your behalf Tracking the closing process to ensure a smooth transaction I welcome the opportunity to address any questions you might have about buying, selling or current market conditions. Please call or e-mail me any time, and I will be happy to discuss your next steps in the buying or selling process. I specialize in both Residential and Commercial Properties. I also head a Real Estate Group to provide you with expert service and support. Areas of Expertise Making transitions in your life is challenging. You may be moving from out of town, a different state, internationally or just next door! Regardless of the distance I am prepared to respond to your unique needs.If you are a BUYER looking to downsize, up-size, want a new construction, desire a condominium, to invest, even if this is your first home, I will design a unique plan to fulfill your needs in a reasonable time frame, with the best negotiated price and the least amount of inconvenience.For my Home Sellers, I have an innovative marketing plan that will leave nothing to chance. Just call, and I would be happy to share the DIFFERENT and SUCCESSFUL TOOLS I utilize on each of my listings. I have lived in Connecticut for over 35 years. I practice Real Estate in Fairfield County, New Haven County and Litchfield County. This includes, but is not limited to Bethel, Bridgewater, Brookfield, Danbury, Harwinton, Kent, Litchfield, New Fairfield, New Milford, Newtown, Oxford, Ridgefield, Redding, Roxbury, Sherman, Southbury, Warren, Washington, Westport and Wilton.