9th September 2023, 10:45 PM
Investing is all about the exponential growth from the compound interest over time. One would have to save and invest the majority of their income and live frugally to build up their investments enough so that the effects of compounding take over, which is around $100,000. After that your investments will likely grow faster than you can contribute to them. At an average return of 10% a year, it will take 25 years to grow $100k into $1m. Saving $100k by age 40 is almost a guarantee that you will retire at 65 a millionaire. Here's how much a $100k investment would grow over time if nothing more was ever contributed:
5 years: $161k
10 years: $259k
15 years: $417k
20 years: $672k
25 years: $1083k
30 years: $1744k
35 years: $2810k
40 years: $4525k
45 years: $7289k
50 years: $11739k
55 years: $18905k
60 years: $30448k
5 years: $161k
10 years: $259k
15 years: $417k
20 years: $672k
25 years: $1083k
30 years: $1744k
35 years: $2810k
40 years: $4525k
45 years: $7289k
50 years: $11739k
55 years: $18905k
60 years: $30448k
