Finance Tip Friday #61: The Most Unfair Advantage You Can Have for Building Wealth

Business or wealth achievement goal concept

What’s the one thing a person can do to build more wealth than anyone else? Believe it or not, it has nothing to do with developing Warren Buffet wizardry for picking stocks or coming up with a million-dollar Shark Tank-style business idea. 

The answer is more straightforward than this. It’s time.

Time is the most important asset a person can have when it comes to investing because of the compound interest effect. A person who knows absolutely nothing about the stock market can buy a simple stock market index fund like VOO, wait patiently as the market compounds along at an average of 10 percent per year, and retire a millionaire. It’s truly mind-blowing!

Yet, most people don’t recognize that this process has to start now to maximize your time in the market. Don’t wait until next year or even tomorrow to start. Do it now!

To illustrate this point, consider someone who puts aside $500 per month and invests in a stock market index fund.

  • If they started at age 25, by the time they’re age 60, they’d have $1,626,146
  • If they started 10 years later at age 35, by the time they’re age 60, they’d have $590,082

That’s three times as much! (By the way, you can try these calculations using this compound interest calculator from

If I could go back in time to my first day of being a nurse practitioner, there’s a lot I’d change: like having the courage to start my practice. But if there’s one simple thing I’d do, it would be max out all my available retirement funds. The seeds you plant today could be the harvest you eat all season long. Therefore, don’t delay. Understand the benefits and start putting time to work for you!

2 Responses

  1. How do I get more information about this? How do I know what stocks create compound interest? What do you mean by maxing out your retirement accounts? Thanks.

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