Question:
❓Which investor ends up with more money by age 65 (at an 8% return)?
- Lisa, who invests $5K per year from age 25–35 and then stops
- Mark, who invests $5K per year from age 35–65
Answer:
✅ Answer: Lisa
Lisa ends up with more—about $787,000 to Mark’s $611,000—even though she invested a third of what he did, because her money had more years to compound.
Both earn 8%. The only real difference is when they start and how long their money compounds:
| Lisa | Mark | |
|---|---|---|
| Invests | $5,000/year, age 25–35 | $5,000/year, age 35–65 |
| Total put in | $50,000 | $150,000 |
| Years compounding | 40 | 30 |
| Value at 65 | ~$787,000 | ~$611,000 |
Mark invested three times as much and still came up short. Time is the most powerful multiplier in your plan—the earlier your money starts, the less of it you need.
See what an early start does to your own number—try the compound interest calculator.
