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2026-11-08

Compounding Example: Investing $5k/yr From Age 25 for 10 Years Beats Starting 10 Years Later

Compounding Example: Investing $5k/yr From Age 25 for 10 Years Beats Starting 10 Years Later

Key points

Compounding scenario, early vs later start at an 8% return | Investing $5,000 a year for 10 years from age 25 reaches $787,180 by 65, beating $611,730 from starting at 35 for 30 years

Image source: @stlouisfed