$1.7 Million: The True Cost of New Cars Every 5 Years

What 40 years of luxury car payments could become if invested instead

The Details

Most calculate just the car payment difference, but the insurance gap between new and 5-year-old models typically runs $200/month. At a 10% historical S&P 500 return, that $200 alone becomes $632,407 over 40 years.

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

If you want to see how this applies to your specific situation, take the free Retire Ready Score — a 2-minute assessment that scores your current plan across income, taxes, healthcare, and protection.