04/13/2025
Real talk about building wealth…because it’s not just about saving, it’s about how you save.
Let’s say you’re 30 and you start saving $5,000 a year in a regular savings account. By the time you’re 65, you’d have about $175,000. That’s something—but it’s not going to change your life.
Now, imagine you invest that same $5,000 every year into a Roth IRA with an average return of 7–10%.
By age 65, your investment could grow to $950,000–$1.6 million…tax-free.
That’s the power of compound growth. That’s how you change your financial future. And yes, this starts in your 20s, 30s, or even 40s. Keep in mind the earlier you start, the harder your money works for you.
Let me show you….
Start at 25
• Invest $5,000/year for 40 years
• Total invested: $200,000
• Final balance: $1.2–2.4 million
Start at 35
• Invest $5,000/year for 30 years
• Total invested: $150,000
• Final balance: $565,000–1.1 million
Start at 45
• Invest $5,000/year for 20 years
• Total invested: $100,000
• Final balance: $245,000–520,000
Same $5,000 per year. The difference? Time. Start early if you can. Think long-term and put your money where it can grow.
Whether you're planning for retirement, investing in your first home, or dreaming of rental income down the road….smart financial habits like this are the foundation.
Have questions about how real estate fits into your wealth-building plan? Let’s talk.
Compass Home Group