Investing $10,000 a Year for Different Ages

Investing $10,000 a Year for Different Ages

Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life.

[sheilaflory]

Growing up, there was a newspaper clipping taped to the wall when my family went from the kitchen to the garage. It basically said person A could save $5 a day for 10 years and never contribute again and they’d still have more money in 40 years than person B who saved nothing for 10 years and then saved $5 a day for the next 30 years . That little clipping made a big impression on me

[yyyyyk]

Most people can't afford to save much in their 20's, so while it's important to understand the effect of compounding interest, most people just can't save much.

[sc]

It is crazy how this stuff is not taught in school. Our school system has 100% failed us. As soon as you start to realize how money works then you see how the world works. You see how politics works. You see how charitys work. Things will be relieved to you when you understand the financial system... And it isnt pretty.

[elduderino]

Time in the market always out paces timing the market.

[anniealexander]

My daughter received an inheritance from her grandfather when she was 18. It's in a trust fund. She works 2 jobs.

[somecallmetim]

At least Fannie’s gonna get her social security lol.

[andrewdyar]

Compound interest.... it's that simple

[krispxzero]

Beau bringing back the 90's grunge look.

[indeedentertainment]

Where am I supposed to invest it though?

[taurasstonys]

Simple, it's the effect of compounding over time.

[duhvn]

Another thing I always mention is utility of money. A $250 concert ticket for a 20 year old probably brings the same level of novelty, joy, and life satisfaction, as a 45 year old taking their family of 4 on a $10, 000 trip to Disney world. Some things are better enjoyed young.

To continue the example - an elderly grandparent paying for a $40k wedding is probably right in line with the other two examples. Money compounds slower than life experiences bring value, which is why balance and A PLAN aré important .

[haloimplant]

It's a little less exciting if you correct for inflation

[charleslemaire]

One factor in many of TMG examples that compare various ages us how time and inflation has an effect. Consider that the 20yo will retire in 45 years, the 30yo will retire in 35 years, etc. As I am retired now, what I thought at age 30, when I made $20K, would be enough to retire, was very different than when I was 55yo and made in about $100K. My point is that the target changes over time. I lived through the Jimmy Carter inflations and though all was lost. The recent Biden-Harris inflation caused incomes to spike after I retired. If a person has a pension with no COLA, inflation puts a financial burden on that pension that they will feel forever. But if you are invested in something that grows, the pain is less.

[CougarSchmidt]

Where are you getting 8% rate of return for 10 years?

[MTLGSE]

I've been investing 50 000$/year since I was 36. I'm hoping I'll be comfortable in my 60s. I don't want to stop working before Im 70. I like my job.

[Shadow]

I'm doing the math on these but I feel like I'm doing something wrong? Compound interest is a simple calculation but my math doesn't match.

[jesse]

"get rich by having more expendable income than the average American and invest it" 😂

[inviz]

No shit

But who had money in their 20s? I didn’t

I was in college/doctorate throughout

[AvocadoToastyII]

I’m 30 and i have $160k invested in retirement accounts. Does that mean I never have to save another dime for retirement?

[IrwinsToyBox]

And the people that decide to borrow from their investments, makes my brain explode…. They have no idea the gigantic negative impact they are making on their future net worth.