The future can feel distant, but planning for it shouldn’t wait. Taking the right steps today can have a significant impact on your financial tomorrow.  Here at B.S.F.S. Investment Advisors, we work with our clients to identify their goals and understand how to systematically achieve them by investing in a strategy that has returned over 14% since 1985 with only 4 down years.  Past performance doesn’t guarantee future results, but this strong history paints the possibility of a bright future ahead.  Our clients’ goals generally fall under three categories: saving for retirement, buying a home, or their children’s college education. What is true for all these goals is that the earlier you start your plan, the more your money will do for you thanks to the impact of compound interest over time.

Consider this: The average investor at retirement has only $182,000 saved for it and gets a 7% return.  First of all, this means that they are either (1) not saving for enough years or (2) not saving enough each year.  Either way, it also means that the average investor is not earning enough on what they can invest overall to reach their goals.  At 7%, it would take an investor 40 years of contributing $2,980 a year to reach that $182,000 mark.  At 14%, that same annual investment over 40 years could grow to $1.2 million.

But what if you wait? While you are way better off at 14% than 7%, delaying savings by just five years could mean a potential shortfall of hundreds of thousands of dollars.  Instead of $1.2 million, you could be left with only $734,000.  Conversely, if you were to set aside just $1,000 total when your child is born at 14%, by age 70, they could have $1.2 million saved for their retirement in today’s dollars.

The magic of compound interest is on your side:

The longer your money has to grow, the more it benefits from compound interest. This means your money earns interest not just on the initial investment, but also on the accumulated gains year after year. The earlier you start, the more time your money has to snowball.  This effect increases exponentially at a higher return rate.

At B.S.F.S. Investment Advisors, we help you to:

• Understand your investments and our strategy in order to craft a personalized savings plan to achieve your goals.
• Invest for growth: We offer a diversified strategy designed to maximize your returns while managing risk.
• Stay on track: We are available to assist you with ongoing guidance and support to keep you motivated and focused on your long-term goals.

We look forward to helping you cultivate the future you deserve.  Feel free to call us with any questions.  Also, a big thank you to everyone who came to our event in June at the Gagliardi Dance Studio & Gallery, hosted with Yulia “Julia” Kushnir, Keller Williams Realtor extraordinaire and catered by the Corner of Ukraine here in Nyack!  It was a lot of fun and a big success.  There was even a dance-off that you can see in the picture below.