One of my favorite bloggers, Carl Richards, shared his thoughts this morning about "What's really necessary" to accomplish life and business goals. He used an analogy about mountain climbing which helped to explain the importance of streamlining business processes by getting rid of excess. The story made me think about investing and the correlation between the ability to accomplish your goals and the time you give yourself to do so.

Using a back of the napkin approach, the figure below shows that over time the ability of accomplishing your goals increases exponentially.

A few key reasons why this is the case:

  1. Compounding- your investments may grow substantially more over a longer time period, even if you start with a modest amount of money, versus investing a more meaningful amount over a shorter time period.
  2. Experience- with more time you gain knowledge and expertise in how to be more efficient. You can relate this to your investments as well. By working with an advisor you already have an expert in the industry but you will come to learn more about how you like to invest, what to expect, and broaden your consideration for new ideas.
  3. Flexibility- by giving yourself more time to achieve the goals you've set for yourself the more choices you will have when it comes time to retire. Maybe you decide to go south for the cold winter months or perhaps take annual trips to see the grandkids on the west coast. With more time comes more flexibility to meet your goals-even if they weren't part of the original plan.

The concept of time is simple, effective, and highly necessary if you want to meet your financial goals. Take control, work with an advisor, and start on the path toward success.

Caroline Hill, Financial Advisor


(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).