I always thought retirement accounts were a scam until I saw the numbers

I read a study from Vanguard last week that said someone who started investing $200 a month at age 25 would have over $500,000 by 65, assuming average returns. That math finally clicked for me because I always figured compound interest was just hype. Has anyone else had a moment where a stat just broke through your skepticism?

2 comments

2 Comments

knight.dylan7d ago

That Vanguard study is exactly what flipped the switch for me too. The part that really got me thinking was how the first 10 years feel like barely anything, but then the later years just explode. Like you put in $200 a month for 40 years, that's only $96,000 of your own money, but the other $400,000 is all from the market doing its thing. It almost doesn't seem real until you actually see the chart with the curve going up like a hockey stick.

dakotab937d ago

My buddy Dave started investing in his early 20s, forgot about it for a decade, and then checked his account during a bored afternoon at work. He thought it was a glitch when he saw the balance because he only put in like fifteen grand. Now he just leaves it alone and complains about how his coffee maker costs more than his first monthly contribution.

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