Cost of Delay Calculator

Generally, most investors know the importance of starting their investments early in life. They understand that each year matters for long-term investment, and they can also choose to start small if they have certain initial financial constraints. But in case you have some financial emergencies and responsibilities during your youth that do not enable you to save or invest enough funds or even start a basic investment, you have no choice but to wait until a few years.

Naturally, the loss of time means that your investment tenure will be shorter, and you may miss out on some investment opportunities. In most cases, if you have already planned out your investment but cannot proceed with it, the loss of time can be a major setback. 

With the help of a delay cost calculator, you can start your investment late and compensate for the lost time by investing an additional amount to meet your expected returns. Unfortunately, it is this additional investment most late investors struggle with which makes the use of a cost of delay calculator necessary.

It is important to measure the cost of delay in investment so that you can understand how much you need to invest or save to be able to earn the desired returns on your investment if you start investing late in life.

This helps you make an informed decision regarding the choice of investment and investment tenure. The cost of delay is to compensate for the lost time and the amount you would have been able to invest in case of an early investment.

Here are the three main benefits of investing early in life:
 

• First, you can invest small amounts of money for a greater number of years.

• With a regular habit of investing, you can control your expenses better.

• Third, your investment can grow through the power of compounding or compound interest.

The primary advantage of long-term investment is that you can invest for a longer period of time and start with a small investment which can be increased later on. Long-term investments are also relatively more immune to market fluctuations as compared to short-term investments.

It is always advisable to start your investments early. By doing so, you can start with small but regular investments in case you do not have enough funds initially. But with time, you can increase the investment amount and also grow your risk-taking capacity. On the other hand, if you start your investments late, the investment tenure will be shorter, and with fewer investment options, there will be less scope for increasing your risk capacity.

If you start an investment in a savings plan in your early years, then you can invest over a longer investment tenure and earn better returns. Even in the case of a simple term insurance policy, buying the term plan early can help protect your family for a longer policy term and reduce the cost of delay since younger lives are insured at lower premiums, owing to lower health risks.

A life insurance policy such as a Unit-Linked Insurance Plan offers the dual benefit of investment and life insurance under one policy. Under a ULIP, you can earn market-linked returns by investing some amount through your policy premiums. Then, on policy maturity, you get the market-linked returns as the maturity benefit, subject to your survival till the end of the policy term.

The primary advantage of investing in life insurance plans is that you can secure your family’s financial future. Moreover, in the event of your demise, the policy’s sum assured can help your dependents sustain their livelihood and meet their financial goals.

If you have a life insurance savings plan, you can also regularly save or invest a fixed amount of money through your premium payments during the policy period. This way, you can build a financial corpus that will help you meet your future goals.  A life insurance retirement plan also helps you plan your finances for your retirement years, with the benefit of regular income and life cover.