Imagine you manage to sock away $500 a month in an investment account that delivers an average annual 8% return, which is a bit below the stock market’s average. If you invest over a 20-year period, you’ll end up with about $275,000, which represents a gain of $155,000.
But if you manage to invest $500 a month over a 30-year period, you’ll end up with $680,000. That’s a $500,000 gain. And if you invest $500 a month over a 40-year time frame, you’ll grow your balance to $1.55 million. That’s a gain of over $1.3 million to enjoy.
