Graduation Letter

“Education is a progressive discovery of our own ignorance.”

-William Durant (1861-1947), Automobile Industry Pioneer

We hope you can find use for this letter for a recent college graduate that is close to you!

Dear Graduate-

Congratulations on your graduation and your hard work over the years. Having four children of my own, I look forward to when they reach your same stage.

I feel passionate about educating young people about their finances. The following link is to a piece I wrote a few years ago that may help you – “The Simple 3 for Financial Planning”. Getting off on the right financial foot is crucial for long-term success. Perhaps the most powerful resource that we cite in that piece is “What Makes you Happy?” Overconsuming will destroy your financial future every time. I highly recommend listening to it.

Below are illustrations that seem to surprise most everyone. For people at your stage it is crucial to know the importance of saving early.

Illustration 1 – Early Earl

Beginning 1/1/1981, “Early” Earl invests $10,000/year into the S&P500 index right out of school in his work retirement plan for 10 years. For whatever reason he stops after 10 years and ends up investing a total of $100,000. Forty years later, at the end of 12/31/20, he had $4,739,501. (11.36% annualized return)

Illustration 2 – Catch Up Carl

Beginning 1/1/1990, “Catch Up” Carl invests $10,000/year into the S&P500 index in his work retirement plan for 30 years. For whatever reason, he needed the new Mustang and lots of fancy items and couldn’t save his first 10 years out of school. Thirty years later, after investing a total of $300,000, at the end of 12/31/20 he had $1,783,593. (9.96% annualized return)

A $2,955,908 positive difference for “Early” Earl who invested $200,000 less!

The numbers could be quite different in the end, but the power of investing early and compounding are undeniable. Call us if we can help you with anything.

Striving to be a Man for Others!

Brian E. Whalen, CFP®, CIMA®, AIF®

Registered Principal

brian.whalen@striblingwhalen.com

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Brian Whalen and Warren Stribling and not necessarily those of Raymond James. Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members. Raymond James Financial Services, Inc. does not provide advice on legal issues. These matters should be discussed with the appropriate professional. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. Please note that direct investment in an index is not possible. These are hypothetical examples for illustrative purposes only. It is not intended to reflect the actual performance of any security and are not guarantees of future success. Investments involve risk and you may incur a profit or a loss. Results may vary with each use and over time.