When I was a kid, I collected comic books. One of my favorites comics was What If? – which featured such interesting ideas as “What If… Spider-Man had joined the Fantastic Four” and “What If… Captain America became President?”.
With that bit of nerdiness in mind, “What If… You Make Maximum Retirement Contributions For 20, 30 or 40 Years?”
Notes about the charts -
- Annual contributions are held steady at 2008 maximums
- Returns are annual and do not fluctuate
- Interest is calculated using year-end-balance
I used percentages between 6% and 14% and a span of 1 to 40 years.
What If You Make Maximum Contributions To A Roth or Traditional IRA?
What If You Make Maximum Contributions To A 401k or 403b?
I am amazed by the power of compounding interest. I realize that I cannot expect a 14% return for 40 years – but the purpose of this chart is to get us all ENERGIZED about saving for retirement. For 2007, I managed to fully-fund my Roth, my wife’s Roth, and my 403b – only 39 years to go!