In my last post, I showed the power of
starting to invest for retirement at age 25 versus age 35. This time,
we’ll look at the value of investing “a lot” rather than “a little”
over a long period of time. Specifically, the hypothetical 25 year-old
who invests $2k per year until retirement at age 65 will end up with
about $518k, assuming an average rate of return of 8%. On the other
hand, the investor who puts away $10k per year over the same time
period will have almost $2.6m.