# The Science of Compound Interests (2)

After discussing the perks of compound interests last week, let us look into more real life examples today – 2 fresh grads who have just started their careers.

Example A:

1. Started saving early and invested \$5,000 at the age of 25
2. Added \$2,500 every year for investing until age 65

Example B:

1. Delayed investing until age 35, but chipped in double capital (\$10,000)
2. Allocated \$5,000 into investment every year until 65 years old

Assuming that the effective annual rate is 7% for both investments, A would be receiving \$608,896.21 at 65 years old, and \$581,487.76 for B. This may look like an astonishing plot twist – how come B has doubled his investment amount but still resulted in lower earnings in the end? The answer actually depends on compound interests.

Let’s bring in another case study. If we would like to save \$1,000,000 for retirement, for every 10 years that are postponed to invest, a double amount of capital would have to be poured in in order to fulfill your goal. On the other hand, if your investment is going to be conducted over a longer span of time (e.g. 50 years), you would just have to invest \$2,150 annually that would result in \$107,500.

Looking back at this example, the shorter the investment timeline, the higher the capital required per year. If we only start investing 15 years before our retirement, the annual amount would be raised exponentially to \$33,800, which sounds unachievable to us stingy savers. Keep in mind that investing early leads you to the way of building retirement funds at ease, without compromising your daily spending pattern. Change yourself for the better, start off with this habit!

## tiips Calculator

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### Bitcoin

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tiips 自2019 年創立至今，2020年完成種子輪融資，唯2021年第四年仍未能籌得新一輪融資，我們作出了艱難的決定，將於2022年2月21號 23:59 終止tiips mobile app 的運作。

### 時間表如下：

31/12/2021 23:59 停止買入實金。

1/1/2022 00:0021/2/2022 23:59 tiips 積分換取資產及賣出實金及Bitcoin 如常進行。而我們將會用 ”買入價” 回購客戶的資產，已回饋客戶多年來的支持。

21/2/2022 23:59 tiips mobile app 停止運作。

1/3/2022 00:0030/11/2022 23:59 人手處理顧客剩餘現金。客戶的剩餘資產將會用2/21/2022 23:59 當刻價格賣出，而相關金額我們會幫顧客保留，而我們將會用電郵方式確認客戶剩餘之金額，客戶可電郵[email protected]Whatsapp 93889879辦理手續領取現全，該現金我們會用FPS 轉賬，手續費維持港幣\$3。

1/12/2022 00:0031/12/2022 23:59 我們會將所有顧客未領取的現金捐贈致愛護動物協會。

tiips was established in 2019 and accomplished its seed funding in 2020. It was with regret that we were still unable to receive the funding for the new round in 2021. Thus, we have unfortunately come to the decision to cease the operation of the tiips mobile app on 21 February 2022 23:59.
To ensure the smooth facilitation and fairness in user points & assets redemption and gold trading, we will close down the functions of tiips mobile app according to different phases.

### Safety of Gold

All users’ gold is now stored in Tiips Services Limited, account provided by Cheung’s Gold Traders Limited. Tiips Services Limited is an third party trustee, which its Trust or Company Service Provider Licence number is TC007559.

### Safety of Bitcoin

All users’ Bitcoin is now stored in the cold wallet owned by Tips Dollar (HK) Limited.

### Timeline as follows:

31/12/2021 23:59 Gold purchases will be suspended.

1/1/2022 00:00 to 21/2/2022 23:59 tiips reward & assets redemption, gold selling and Bitcoin trading will be operated as usual. To express our gratitude throughout the years, tiips will purchase users’ assets at the “BUY PRICE”.

21/2/2022 23:59 tiips mobile app will be ceased to operate.

1/3/2022 00:00 to 30/11/2022 23:59 tiips will manually proceed the users’ remaining cash. Those assets will be sold at the price as of 21/2/2022 23:59, while we will keep the amount of money and email the customers for further confirmation. Customers may email us at [email protected] or Whatsapp 93889879 to collect the cash. The payment will be performed through FPS, and tiips will keep the handling fee at HKD 3.

1/12/2022 00:00 to 31/12/2022 23:59 tiips will donate all the uncollected cash to The Society for the Prevention of Cruelty to Animals (SPCA).

The tiips mobile app might have suspended its operation, nevertheless tiips will continue to expand its corporate market, to sustain the belief in combining spending and saving in the future.

Last but not least, we would like to express our heartfelt gratitude for the support from tiips’ users, merchants and partners over the past three years.