Jordan's Scenario
Starting Age 25
1855
Retirement Age 70
5575
Monthly Contribution $200
$50$1,000
Annual Return 7%
3%12%
Retirement Balance
$762,944
45 years of growth
Total You Contributed
$108,000
Growth from Compounding
$654,944
86% came from compounding
Compare Two Savers
Jordan
Start Age 25
Stop Age 70
$/month $200
Alex
Start Age 35
Stop Age 70
$/month $200
Retirement Age 70
5575
$762,944
Jordan
$362,312
Alex
Balance Over Time
How Jordan's money grows year by year at 7% annual return
Jordan's Balance
Total Contributed
$762,944
Final Balance
$108,000
Total Contributed
86%
Came from Compounding
Jordan contributes $108,000 over 45 years — but walks away with $762,944. The extra $654,944 came entirely from compounding. Time did most of the work.