What's the Best Age to Start Investing?

The two-investor example that says it all

Both invest $300/month at a 7% return. Both stop contributing at age 65. The only difference is when they started.

Early Emma — starts at 22, stops at 32 (10 years)

Total contributed: $36,000. Balance at 65: about $578,000.

Late Larry — starts at 32, contributes every year until 65 (33 years)

Total contributed: $118,800. Balance at 65: about $521,000.

Why earlier always wins

Compound interest creates a 'doubling clock.' At 7%, money roughly doubles every 10 years (Rule of 72). The doublings near the end are the largest — but you can only get them if your money has been invested long enough to reach them.

• $1 invested at 22 becomes ~$24 by age 65
• $1 invested at 32 becomes ~$12 by age 65
• $1 invested at 42 becomes ~$6 by age 65
• $1 invested at 52 becomes ~$3 by age 65

Every decade you delay roughly cuts the final result in half.

Starting in your 20s

Even $50–$200/month from age 22 to 30 changes your retirement materially. The simplest stack:

1. Open a Roth IRA (you're likely in a low tax bracket).
2. Buy a total market index fund or target-date fund.
3. Automate $100–$300/month.
4. Increase by 1% of income every raise.

Starting in your 30s — still great

By your 30s, income is usually higher. Aim to invest 15% of gross income across 401(k) + IRA. Capture employer matching first — that's an instant 50–100% return.

Starting in your 40s or 50s — catch-up mode

Late starters need higher savings rates (20–30% of income) and should max out catch-up contributions starting at 50. A late starter who saves aggressively can still retire comfortably at 65 — just not as cushioned as an early starter.

The opportunity cost of waiting one year

Skipping just one year of $500/month contributions at age 25 costs roughly $90,000 in retirement balance at 65. One year. That's the real price of 'I'll start next year.'

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