Cost of Waiting

The $800,000
Head Start

One investor starts at 25 and stops at 35. The other starts at 35 and never stops. Time — not the amount — does the heavy lifting.

Early Bird

Invests $7,000 / year for

10 years
Age 25 – 35
Total invested$70,000
By age 65, becomes
$1,946,690
Late Starter

Invests $7,000 / year for

30 years
Age 35 – 65
Total invested$210,000
By age 65, becomes
$1,151,458
Started ten years earlier. Invested $140,000 less. Ended with $795,232 more.

*Assumes a 10% average annual return, compounded to age 65. The earliest dollars compound the longest — which is why starting beats catching up.