The Story of Mr. Invest Now, Mr. Catch Up and Mr. Wait Longer

Posted by Fitz Villafuerte under Investing on February 25, 2014

This is the story of three friends who were born on the same year.

Their names are Mr. Invest Now, Mr. Catch Up and Mr. Wait Longer.

On their 30th birthday, they went drinking in a bar.

Towards the end of the night, Mr. Invest Now said, “I want to start investing now. I’ll invest P20,000 every year until our 40th birthday. Do you want to join me?”

“Not now, I’ll invest and catch up with you later,” said Mr. Catch Up.

“Not now, I’ll wait a little longer, and invest when my salary’s higher,” said Mr. Wait Longer.

On their 34th birthday, the three friends met again at the same bar.

“I’m ready to invest,” announced Mr. Catch Up. “I’ll invest P20,000 every year but I won’t stop on our 40th birthday. I’ll invest until we’re 60!”

“Great to hear that! How about you?” Mr. Invest Now asked Mr. Wait Longer.

“Now now, I’ll wait a little longer, when I have more money,” answered Mr. Wait Longer.

On their 40th birthday, the three friends were in their favorite bar once more.

“This is my final year of investing! I’ll no longer invest starting next year,” announced Mr. Invest Now.

“I’m not stopping,” said Mr. Catch Up. “I’ll continue investing until we’re 60 years old.”

“Finally, I will start investing!” said Mr. Wait Longer. “And I will invest P50,000 every year until we’re 50 years old.”

On their 61st birthday, the three friends decided that they will go to Munich to attend the Octoberfest.

They took out their investments, which they all placed in the same mutual fund.

If the compounded annual growth rate of the investment is 10%, who do you think made the most money?

The tables below will show the answer.

Mr. Invest Now

invest now The Story of Mr. Invest Now, Mr. Catch Up and Mr. Wait Longer

Mr. Catch Up

catch up The Story of Mr. Invest Now, Mr. Catch Up and Mr. Wait Longer

Mr. Wait Longer

wait longer The Story of Mr. Invest Now, Mr. Catch Up and Mr. Wait Longer

The Clear Winner

summary The Story of Mr. Invest Now, Mr. Catch Up and Mr. Wait Longer

Time to answer a question…

Are you going to invest now, catch up later, or choose to wait longer?

Postscript:
This story is based on one of the topics discussed in the Practical Money Management Strategies seminar of the IMG Wealth Academy. Visit this page to learn how you can attend this seminar for FREE.

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40 Responses to “The Story of Mr. Invest Now, Mr. Catch Up and Mr. Wait Longer”


  1. Bill Asignar says:

    Let me another name of their 4th friend, its Mr. Never Started. #justkidding

    Thanks for sharing this story Fitz :)

    -Bill

  2. Sheila says:

    This is such an eye opener information for person like me who’s financial goal this year is to “make money work for you”.. :)

    Thank you so much sir for sharing!

  3. delia p says:

    i tried to but changed my mind because i checked and found out your not registered with SEC..

  4. Fitz says:

    @Bill
    Oo nga, dapat pala sinama ko si Mr. Never Started! Haha.

    @Sheila
    You’re welcome. The key here is to start now, even a small amount will yield to huge profits in the long run.

    @delia p
    Yes they are registered with the SEC, you can verify here at iregister.sec.gov.ph

    Their registered name is International Marketing Group (IMG) Insurance Brokers Corp.

  5. Rose Angelie says:

    I love how simple the story was told but full of sense. Thanks for this perfect reminder for many of us who are thinking of just catching up or to even wait longer. I’m definitely sharing this. :)

  6. ma. lourdes rabino says:

    yeah,its true. thank you for sharing, may it be an eye opener to everybody.

  7. edward says:

    Lesson: Invest early and the time is will be your best friend.

  8. Jerome says:

    guess people should really invest early!

  9. Roy says:

    … assuming that the investments are totally RISK-FREE … but that is just wishful thinking

  10. nang biday says:

    you know whoever shared this story its really interesting. My question now is where can i Invest if i want to make money.. please let me know where, what, and who will give me the answer..

    thank you and God bless.

  11. PalQ says:

    10% average yearly return is too high. 5-6% is more realistic.

  12. NotSure says:

    Is the 10% interest always assured? I know on most funds there is a best and worst case.

    If on the worst case will the value beat inflation? We all know that your 2M today might be only be worth 200k in 10 years.

    Why not invest in always appreciating asset like Land.

  13. rmc13_ says:

    The question is: WHERE or WHAT will you invest in? It would’ve been helpful if you gave options since, as a young professional who has recently joined the Pinoy workforce, we really don’t know what’s out there. Do we put money in stocks? Do trading? In the bank? Be a venture capitalist and put money in startups? How do we deal with stocks and trading? What’s the best kind of account to put money in (the bank)?

  14. yuri says:

    For Mr. Invest – its good for him to start early and end early. However, did he enjoy his time during the time he was investing? Time and Money are 2 different things. You may have millions, but did you invest for time, experience, friends and family? I am currently 30 years old and I don’t even have P50,000 in my savings but when I checked my investments (time, experience, friend and family), I know I gain so much for a lifetime. I have traveled places that are now destroyed by calamities. I have experience things that I can only experience with agility (that comes with age). I have adventures that were shared with friends and family.

    In this case, I might chose to be Mr. Catch or even Mr. Wait longer, they might invested more money because they have started late. But I hope those times that they have not invested in money, were invested in time, experience, friends and family. Which are priceless I believe.

    What if Mr. Invest Now, died early? What happened to his investments?

    Just my 2 cents. No harm intended.

  15. RAM says:

    The question is:
    Where should you invest?

  16. nikki says:

    the problem is where to invest???

  17. abigail j.ricafuente says:

    i want to start now :)

  18. Jolo Ciriaco says:

    The question is, where did they invest?

  19. jun says:

    I’LL go to mr. invest now,Y?bec.he juz not take a tym waste but to start investing early as he can to invest more as a savings on his own policy…

  20. Fitz says:

    Hi everyone.

    Here’s the thing… the 10% CAGR is actually an average rate.

    One of my favorite mutual funds, the Philequity Fund, currently has a compounded annual growth rate of 18.86% for the past 19 years.

    It’s NAVPS back in Jan 1995 was 1.10, and last Jan 2014, it’s NAVPS was 29.31.

    Where can you invest?

    If you want at least 10% growth, your best bet are Balanced Funds and Equity Funds – both in UITF and Mutual Fund companies.

    Also, by investing every year, you are doing the Cost Averaging Strategy.

    Thanks for the comments and for sharing this article.

    My next one will be a follow up on this.

  21. Whether you start now, later, or in the next few years, question is where should you start? Where to start? You should have a good plan and a backup plan together with it. It’s easier said than done. :)

  22. Kaye says:

    Well, surprisingly, 10% interest rate for investments is very realistic because that is the average interest rates our clients earn with their investments in our company. And as a financial advisor, it is our job to help people learn their options in investing, income growth and how to reach financial goals. Would you rather put your money in the bank which can only offer .025% per annum for regular savings? If that’s the case, how can you cope up with the increasing prices of commodities and tuition fees every year. Our current inflation rate is at 3-5% per annum and average tuition fee increase is at 12.5% as per CHED Q4 2012 study. Think about that. We are here to help.

  23. Mark Dulag says:

    Such a simple but great illustration. I go with Mr. Invest Now. Investing now doesn’t mean you invest all your money and sacrifice your tours/travels abroad or other things you want. The idea here is you allot some money for your regular investment which is ideally 30% of your gross income but not to neglect also your dream vacations or tours. You can do both.

    For those who want to invest now but don’t know where to invest then you can contact me at +639088761099. I’m a licensed Financial Advisor at your service.

  24. Laura says:

    Why you wait?!

    You live to experience LIFE!!

    Not to preserve money for your graveyard!!

    – Sanjee Singha

  25. ed says:

    before i joined in this kind of investment. five years of continous investment, then as they said 5 years waiting, then on 10th year as promised i will receive money and pension……you know what happend? on the 10th year, the company delaclared “BANKRUPTCY”….so my investment totally lost…. and it was not only me who was VICTIMIZED but my WHOLE FAMILY

  26. Mark Dulag says:

    Sorry for that bad experience Ed. That is why we need to see the company we are partnering first. Their track record, current status, total assets, total net worth, net income per year, etc.

    Don’t stop trusting. Numerous or uncountable benefited from these kinds of investment.

    Good luck on your next investments!

  27. Jade Jamili says:

    There are 2 options, either you should sacrifice now and enjoy later OR enjoy now and suffer later! :)

  28. jeannie says:

    how about the cost of money?
    this illustration is good if the economic situation is stable.
    the worth of the 20,000 before can be worth more than the 50,000 now

  29. Kulangot says:

    If in the next 10 years that company doesnt close or merge with other companies and have new policies then it will be certain..until we crossed that bridge there still doubts..and there are trends to watch out..good to invest in investments that you have control,not the company,not the government.

  30. aihles says:

    I can totally relate to Ed because I lost also my investments (educational, pension, memorial, etc) to a pre-need company 2 years ago.

    It pays to ask, listen and educate one’s self.

    I’m now a Financial Advisor and is willing to help especially on Investment Planning. So if you happen to be in Iloilo or Bacolod, just email me at aihles2012@yahoo.com.

  31. Filipina Mendoza says:

    where to invest money wisely

  32. neomi says:

    I am a believer in investing early so I did..Unfortunately just like the others I had lost hundred thousands because I’m FINANCIALLY ILLITERATE that time…so I decided to be well equipped and trained in investing my hard earned money before my retirement years( which will be after 8 years so I can’t afford to lose anymore )….now I am a LICENSED FINANCIAL ADVISOR /CONSULTANT and will be glad to share my kmowledge on where to put your hard earned money….you can contact me at 09208005177 / 09234210291….

  33. Bon says:

    Wow, great article. Now I’m truly decided to Wait Longer. The value of my money is very important now and I must use it to its full potential.

  34. Jay Tobio says:

    The numbers are actually true. The thing is, in every investment there is a risk. To limit that risk, we need to diversify. Don’t put all your golden eggs in one basket. You can put 30% in stocks, 30% in mutual fund and the 40% in asset which you had control like land or condominium.

    It’s also easier to invest if you have plenty of money to invest to. Try to find ways to earn like put up a business or do some sidelines. Educate yourself always because there is only 1 rule here. “Don’t lose money”

  35. ren says:

    The most important thing in life is to live at this moment , not the past and certainly not the future. However,I encourage everyone to invest early. You can enjoy your early life, family,friends,travels,lavish life while you are investing.

  36. lyn domling says:

    You can invest sa AXA. Inquire kau sa metro bank kng wala kau makitang axa s lugar nyo…My 4,500 every 3mnts. Or 5taw every 3mnts..payable every 3-5yirs..meron dn po sa phil am life.inquire kau ng for investmnt..mas magnda n yan kc my kasma n clang insurance…i did invest sa axa

  37. leizzz says:

    The Case of Mr. Invest and Mr. Enjoy

    In a village one day, Mr. Invest saw Mr. Enjoy fishing at the lake. He noticed 3 big fishes caught by the fisherman. The former started a conversation

    Mr. INvest: How much time do you spend fishing, my fiend?
    Mr. Enjoy: Only for a while, sir.
    Mr. Invest: And what do you do with the rest of your time?
    Mr. Enjoy: I stroll with my wife, play with my kids, and sometimes sip wine with my friends
    Mr: Invest: I have invested so much in my education, now I have an MBA, I can teach you how you can maximize your talent in fishing and make you rich
    Mr: Enjoy: how long will it take me to do that sir?
    Mr. Invest: maybe 20-25 yrs. You should start investing now. i will teach you where to put your money. so you can buy a boat
    Mr. Enjoy: after that sir?
    Mr. Invest: when you already have a boat, you can fish more and sell your catch.
    mr. Enjoy: and after that sir?
    Mr. Invest: when you already have a big production, you can then export your products. Big profit!
    Mr Enjoy: after that sir?
    Mr. Invest: when you already have big profit, you can invest in mutual fund and stocks
    Mr.Enjoy: and after that sir:
    Mr. Invest: when you already have funds and stocks, you are already financially secured
    Mr. Enjoy: after that sir?
    Mr. Invest: after this, since you already are financially secured, you can go back to this village, stroll with your wife, play with your kids and sip wine with your friends.

    Lesson learned: Define what will make you happy. Dont wait 20 years to enjoy life.

  38. Fitz says:

    Hi leizz,

    I agree. You should define what will make you happy and you shouldn’t wait to enjoy life.

    Moreover, it’s wrong to believe that you cannot enjoy life if you choose to invest and secure your future.

    Investments are not just for long-term goals such as a comfortable retirement, but it can also be used for short-term and medium-term objectives such as taking your family on vacation next year, or being able to send your child to a good school.

    Investing and running a business will require time and effort, but it won’t and shouldn’t steal away so much of your time for your loved ones. This is where proper time management, productivity and work-life balance comes in.

    Lastly, it’s not a situation of “either/or” – this is a poor person’s mindset. It’s all about believing that life is abundant and it is possible to have both – to enjoy life today, and secure a comfortable future.

  39. Thank you very much sir Fitz for a very informative article (as always).
    If I may ask, when you say CAGR, like in Philequity, do they compound it for you or do you have to redeem and reinvest manually? How about those in UITFs? Thank you very much and more power

  40. Fitz says:

    Hi Nestor. The compounding happens intrinsically. It’s not something that Philequity or UITFs do and you don’t have to redeem and reinvest manually.

    The CAGR is just a number that gives you a numerical value to measure how much your investment has grown. It’s not a sure number, but nevertheless a good way to judge if an investment performed well or not.

    For example, if investment A was worth P100 two years ago and is now worth P144, while investment B was worth P200 three years ago and is now worth P328 – which one performed better?

    The answer is investment A because it’s CAGR is 20% compared to investment B, which is around 18% – this is one of the uses of CAGR.

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