When you are young, it is easy to ask the question, “Why bother saving for retirement now? I have so many things I want to do, places to go, current bills to pay, college loans to pay off . . . plus, retirement is SO FAR AWAY!”
However, looking at these astonishing math calculations, may give you a pretty quick and simple answer to your question.
If a 25-year old with $10,000 invested $320 a month at a 7% annual compound rate of return until they turned 65, they would wind up with $1 million. Your money is doubling every 10 years!
If you wait until you are 35-years old, ten years later, the price of waiting has been high. Not as costly as it will be, but tough enough. Instead of $320 a month, you’re looking at saving $775 a month to turn that $10,000 into seven figures at a 7% annualized return.
Starting as a 45-year old, you’ll need to add $1,850 every month to that $10,000 base in order to reach $1 million when you turn 65.
Finally, a 55-year old will need to add a whopping $5,700 per month to the $10,000 base in order to reach $1 million within the remaining ten years!
See the full article from Fidelity here.
