What This Article Answers This article shows how gradual increases in contributions affect long-term outcomes compared to a flat contribution rate. Assumptions The Outcome Gradually increasing contributions produces nearly the same outcome as contributing $500 from the start. Breakdown Strategy Total Contributed Ending Balance Flat $500 $180,000 ~$680,000 Gradual increase ~$165,000 ~$650,000 Why This Happens […]
What This Article Answers This article compares long-term outcomes of saving in cash versus investing in the market. Assumptions The Outcome Investing produces over 3× more money than saving cash. Breakdown Strategy Total Contributed Ending Balance Cash savings $180,000 ~$240,000 Market investing $180,000 ~$680,000 Why This Happens Low returns fail to outpace inflation meaningfully. Compounding
What This Article Answers This article shows how employer matching affects total retirement outcomes and why it dominates most other optimizations. Assumptions The Outcome Employer matching increases the final balance by over $400,000 with no additional employee cost. Breakdown Scenario Total Contributed Ending Balance No match $180,000 ~$680,000 With match $270,000 ~$1,090,000 Why This Happens
What This Article Answers This article compares Roth and Traditional IRAs using identical investments to show how taxes affect long-term outcomes. Assumptions The Outcome Despite the upfront tax cost, the Roth IRA ends with slightly more usable money under these assumptions. Breakdown Account Type Contributions Taxes Paid After-Tax Value Traditional IRA $180,000 ~$120,000 (withdrawal) ~$720,000
What This Article Answers This article shows how a 10-year delay affects long-term outcomes, even when contribution amounts stay the same. It explains the cost of time using simple math rather than motivation or advice. Assumptions The Outcome Starting at 25 instead of 35 results in over $600,000 more at retirement, despite only contributing $60,000
What This Article Answers This article explains what happens if you invest $500 per month for 30 years. It looks at total contributions, long-term growth, and how compounding affects the final outcome. Assumptions The Outcome Over 30 years, investing $500 per month results in a substantial portfolio value, even though the total amount contributed is