Page 7 - PMD Financial Advisers_An introduction to investing
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PMD Financial Advisers | Investor Education
Case study: It's never too early to start
$1,000 each year
to put towards Mark’s university education. As Mark will likely start university when he is 18, their investment time horizon
is 15 years. starting investing.
$35,000 $30,000 $25,000 $20,000 $15,000 $10,000
$5,000 $0
Start now at $1,000 pa Start in 5 years (catch up) Start in 5 years at $1,000 pa Assume a return of eight per cent per annum and dividends reinvested.
By waiting 5 years Peter and Karen will need to invest $1,874 every year to reach the
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