What does an Investing Early vs Chart look like?
Ever wonder what really are the visual differences between investing early vs late chart? Tired of hearing “you need to start early, you don’t have enough money to retire, you’ll be working the rest of your life”, but don’t actually know what that looks like, how to start, or what it truly means?
Below, there will be several graphs visually showing the difference between starting your investment journey at different ages, and how that ultimately compounds later in life. We’ll start with starting at 20, 30, 40, 50, and 60 years old investing $1000 every year, assuming an average of 7% return.
What does starting at 20 look like for investing early vs late chart?
You can see that in 2050, you would have over $100k, then 20 years later, it would amount to over $430k. By putting away less than $100 every month for 30 years, your investment would grow to over $100k. This is just by investing $1000 every year.
Now if you decide to have a larger nest egg waiting for you at retirement, you could opt for the $6,000 contribution towards a Roth IRA. Check these posts out for more info on Roth IRAs: what they are, how to choose the best one, and how you can make the most out of them!
What does starting at 30 look like for investing early vs late chart?
In 2060, you would have over $100k. By 2070, it would amount to over $210k. By putting away less than $100 every month for 40 years, your investment would grow to over $210k. This is just by investing under $100 every month, every year.
Again, if you decide to have a larger nest egg waiting for you at retirement, you could opt for the $6,000 contribution towards a Roth IRA. Check these posts out for more info on Roth IRAs: what they are, how to choose the best one, and how you can make the most out of them!
What does starting at 40 look like for investing early vs late chart?
In 2070, you would have over $100k. By the time you’d ideally retire, you would have $100k to live off of.
What does starting at 50 look like for investing early vs late chart?
In 2070, you would have over $44k. By the time you’d ideally retire, you would have $44k to live off of.
What does starting at 60 look like for investing early vs late chart?
In 2070, you would have over $15k. By the time you would ideally retire, you would have $15k to live off of.
Comparison chart for investing early vs late chart
Here’s a comparison chart of how much your contribution of $1000 per year, every year for the next ~50 years would amount to.
As you can see, starting at age 20 ultimately amounts to over $430k in comparison to the next largest amount of $214k.
