Money Math

$1,122,789 Difference: Start Investing at 25 vs 45

March 4, 2026· 2 min read
$1,122,789 Difference: Start Investing at 25 vs 45

How a 10-year head start compounds into seven figures by retirement

The Details

THE PART MOST PEOPLE MISS: The 25-year-old invests just $60,000 more than the 45-year-old ($240,000 vs $180,000) but ends up with 4.2x more wealth. After age 50, compound returns contribute more each year than your actual contributions.

What this means for you

Retirement decisions compound — getting one of these details wrong can cost tens of thousands of dollars over a retirement. The good news: most of these mistakes are completely avoidable if you understand how the rule actually works.

Next step

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The Compound Effect

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