Regular investing is the key to financial success. A small amount invested regularly can be more effective than larger sums invested every now and then.

The advantages of starting early and saving regularly can be huge, even if the amounts you're saving aren't.

Getting started

If you'd like more information, talk to your financial adviser. If you don't have an adviser, we can help you find one.

Starting early and saving regularly pays off

Start saving earlier and reap the rewards

Let's say Adrian and Sarah are both aged 40 and they decide it's a good idea to put some money away towards their retirement.

Sarah decides to immediately start investing $1,000 per month for the next 20 years in preparation, while Adrian decides it's a better idea to invest $2,000 a month, but doesn't start putting any money away until he reaches 50. They both are planning to retire at age 60 and we assume that their investment will generate 8% a year after tax.

The graph shows that even though Adrian and Sarah both invested $240,000, Sarah's savings are larger because of an extra 10 years of compound earnings.

Compound interest

We can put the increase in Sarah’s savings down to compounding, which occurs when interest is calculated on both the principal and interest previously accrued.

When should you start?

Right now! As you can see from the example above, the longer your investment plan is in place, the more time there is for compound interest to work for you. Sarah's savings grow more quickly over time, generating more returns each year, even though the rate of return and amount contributed is constant over that time.

Successful investing means you must stick to your investment plans and contribute regularly. The best way to do this is to arrange a direct debit from your pay or bank account into the investment you've chosen.

The key to financial success

Establish what your financial goals are, develop and investment plan and start saving regularly as soon as you can to make sure that compound interest works for you.

Where to invest your savings

There are almost unlimited options when it comes to where to invest. Your financial adviser will work with you to understand your requirements and can advise you on how best to meet your goals.

Planning for your retirement?

If one of your goals is to provide yourself with a comfortable retirement, don't rely on the Superannuation Guarantee, which is only 9% of your salary.

This may seem like a lot right now, but most people will need to save much more than 9% each year to meet their retirement goals. For more information, go to Superannuation - do you have enough?

Important information

This information was prepared by Asgard Capital Management Limited ABN 92 009 279 592 AFSL 240695. To the extent permitted by law, no liability is accepted for loss or damage as a result of reliance on this information. The investment information or general advice provided in this publication does not take into account any person's personal objectives, financial situation or needs and because of that a person should consider the appropriateness of the information or advice having regard to these factors. In deciding whether to open, or to continue to hold, an Asgard Account, you should consider the relevant Product Disclosure Statement or Financial Services Guide for that account issued by Asgard. Copies can be obtained from Asgard or a financial adviser.

Why choose Asgard?

• Great service. Asgard is one of Australia's most awarded investment platforms, currently administering more than $38 billion for over 400,000 investors.
• Peace of mind. Your money is in good hands - Asgard has over 18 years' experience in investment and super administration.
• Solid backing. Asgard is owned by St.George*, one of Australia's largest and most respected service companies.
• Make choices. We have one of the largest investment menus in the industry, giving you access to over 330 of the best managed investments.
• Have control. Choose from a range of preset managed investment portfolios or build your own from managed investments and shares.
• Save money. You can save on transaction costs and paperwork by keeping your investments in one place.

* Please note an investment in Asgard Super/Pension is not a deposit or liability with St.George. St.George does not guarantee your capital or the performance of your investment.