Cost of Waiting
What does waiting really cost me?
Two identical plans, one started later. The money you would have invested is kept aside rather than spent, so what the comparison isolates is time — nothing else.
Your plan
The same assumption applies to both plans. This is not a view on markets.
Cost of waiting
€26,058
Over 25 years, waiting 5 years leaves you with this much less.
If you start now
€381,063
If you wait
€355,005
Share of the outcome lost
6.8%
Set aside while waiting
€40,000
Monthly needed after the delay
€557
+€57
The flat stretch is the wait: the money is there, it is simply not invested yet.
Show these figures as a table
| Year | Started now | Started later |
|---|---|---|
| 0 | €10,000 | €10,000 |
| 1 | €16,763 | €16,000 |
| 2 | €23,932 | €22,000 |
| 3 | €31,532 | €28,000 |
| 4 | €39,587 | €34,000 |
| 5 | €48,125 | €40,000 |
| 6 | €57,176 | €48,563 |
| 7 | €66,770 | €57,640 |
| 8 | €76,939 | €67,262 |
| 9 | €87,719 | €77,461 |
| 10 | €99,145 | €88,272 |
| 11 | €111,257 | €99,731 |
| 12 | €124,096 | €111,879 |
| 13 | €137,705 | €124,755 |
| 14 | €152,130 | €138,403 |
| 15 | €167,422 | €152,871 |
| 16 | €183,630 | €168,206 |
| 17 | €200,811 | €184,462 |
| 18 | €219,023 | €201,693 |
| 19 | €238,328 | €219,958 |
| 20 | €258,791 | €239,318 |
| 21 | €280,481 | €259,841 |
| 22 | €303,474 | €281,594 |
| 23 | €327,845 | €304,653 |
| 24 | €353,679 | €329,096 |
| 25 | €381,063 | €355,005 |
Method, sources and limits
- Method version
- 1.0.0
- Both plans use the same return assumption, monthly compounding and end-of-month contributions. While waiting, the capital and the planned contributions are set aside and earn nothing; they are not spent. No tax, no fees.
Past performance is not a guide to future returns. These figures describe what happened over the period shown and nothing else.
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