The Cost of Waiting
Scenario B had to invest $0
more of their own hard-earned money just to end up with
$0 difference by retirement
(A: 65, B: 65).
Scenario A's money had 0 years longer to compound.
Compound interest does the heavy lifting so you don't have to.
💡 Insight: The "Rule of 72"
At an
8% annual return, your money doubles roughly every
9 years (72 /
8).
Starting at age
22 instead of
31 means your money gets about
extra doubling cycles over your lifetime. That extra cycle can dramatically change the ending balance. This is why "Time in the Market" beats "Timing the Market."
Note: This view assumes your balance keeps growing after you stop contributing and does not include expenses or withdrawals in retirement.