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Investing Example

Why you should start early

Look at the following example: Investor A started to save R1 000 per year from age 19. He stopped at age 27, but left his investment to grow. Investor B began saving 10 years after Investor A has started. He continues to invest his R1 000 per year until age 65 and yet he never manages to accumulate as much money as Investor A.

  Investor A Investor B
Age Contribution Year end Value Contribution Year end Value
19 R 1,000.00 R 1,080.00    
20 R 1,000.00 R 2,246.40    
21 R 1,000.00 R 3,506.11    
22 R 1,000.00 R 4,866.60    
23 R 1,000.00 R 6,335.93    
24 R 1,000.00 R 7,922.80    
25 R 1,000.00 R 9,636.63    
26 R 1,000.00 R 11,487.56    
27 R 1,000.00 R 13,486.56    
28   R 14,565.49 R 1,000.00 R 1,080.00
29   R 15,730.73 R 1,000.00 R 2,246.40
30   R 16,989.18 R 1,000.00 R 3,506.11
31   R 18,348.32 R 1,000.00 R 4,866.60
32   R 19,816.18 R 1,000.00 R 6,335.93
33   R 21,401.48 R 1,000.00 R 7,922.80
34   R 23,113.60 R 1,000.00 R 9,636.63
35   R 24,962.69 R 1,000.00 R 11,487.56
36   R 26,959.70 R 1,000.00 R 13,486.56
37   R 29,116.48 R 1,000.00 R 15,645.49
38   R 31,445.79 R 1,000.00 R 17,977.13
39   R 33,961.46 R 1,000.00 R 20,495.30
40   R 36,678.38 R 1,000.00 R 23,214.92
41   R 39,612.65 R 1,000.00 R 26,152.11
42   R 42,781.66 R 1,000.00 R 29,324.28
43   R 46,204.19 R 1,000.00 R 32,750.23
44   R 49,900.52 R 1,000.00 R 36,450.24
45   R 53,892.57 R 1,000.00 R 40,446.26
46   R 58,203.97 R 1,000.00 R 44,761.96
47   R 62,860.29 R 1,000.00 R 49,422.92
48   R 67,889.11 R 1,000.00 R 54,456.76
49   R 73,320.24 R 1,000.00 R 59,893.30
50   R 79,185.86 R 1,000.00 R 65,764.76
51   R 85,520.73 R 1,000.00 R 72,105.94
52   R 92,362.39 R 1,000.00 R 78,954.42
53   R 99,751.38 R 1,000.00 R 86,350.77
54   R 107,731.49 R 1,000.00 R 94,338.83
55   R 116,350.01 R 1,000.00 R 102,965.94
56   R 125,658.01 R 1,000.00 R 112,283.21
57   R 135,710.65 R 1,000.00 R 122,345.87
58   R 146,567.50 R 1,000.00 R 133,213.54
59   R 158,292.90 R 1,000.00 R 144,950.62
60   R 170,956.34 R 1,000.00 R 157,626.67
61   R 184,632.84 R 1,000.00 R 171,316.80
62   R 199,403.47 R 1,000.00 R 186,102.15
63   R 215,355.75 R 1,000.00 R 202,070.32
64   R 232,584.21 R 1,000.00 R 219,315.95
65   R 251,190.94 R 1,000.00 R 237,941.22

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