Quote:
Originally Posted by Xist
If I am able to save $13,600 in the next year I am unsure that I would be able to do anything significant with it.
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How is your retirement account looking? If you are 40 today $13,600 invested in an S&P 500 index fund should be worth $230,619 when you turn 67 and are at full retirement age. That is significant to me.
(That is calculated at 10.53% which is the average annual return for Vanguard’s VFINX founded in 1976)
EDIT
If you invested $13,600 back when you were 20 that would have turned into $1,877,285 without contributing another dime. The beauty of compounding interest. The longer you wait the harder it is.