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When you invest while you’re young, growing wealthy is much easier. Based on the age when you get started, here’s how much you need to invest to have $100,000 at age 65.
All of these projections presume that your rate of return will average 10 percent, which is not an unrealistic assumption if you invest in the stock market.
Even if your rate of return is less, starting young helps you to grow wealthy. If you put away $50 per month at age 25 and achieve an after-tax return that averages 5 percent, you’ll have almost $77,000 by age 65. At $100 per month, your nest egg will grow to over $153,000.
If you wait until age 55 to save $50 per month, you’ll have a little less than $8,000 at age 65. If you invest $100 per month, you’ll have less than $16,000 to show for your efforts.
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