Quiz Question of the Month! (September 2019)

September 4, 2019

At age 25, to reach an extra $523,000 into your Superannuation account by retirement (age 65), at a return of 8% p.a., after all fees and charges you will need to deposit $150/month.

If you wait until age 40, how much will you have to deposit each month to reach the same amount?

A. $350 B. $550

Show answer

The answer is B!

The person who started at 25 would deposit a total of $72,000 of his own money; The person who started late at age 40 would need to deposit $165,000 to have the same amount at age 65.

This is a simple illustration to show the importance of starting early to avoid disappointment and doesn’t take into account all variables like the time value of money or that your salary can increase significantly between the ages of 25 and 40.

“Compound interest is the 8th wonder of the world. He who understands it, earns it. He who doesn’t, pays it.” – Albert Einstein

If you have answered this question from our “Chance to WIN: $50 bonus” email, you are now in the running to WIN one of 5 x $50 bonuses invested into your Raiz account. If not, simply check for an email titled “Chance to WIN: $50 bonus”, answer this question within the email and you will automatically be in the draw for the month!

With Raiz Invest Super, our mobile-first platform has made it a simple and easy process to search for Super accounts and consolidate on your mobile phone. By getting your Super sorted now, and patiently letting your money enjoy the benefits of compounding, the returns could be life changing over time.

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