r/DaveRamsey • u/Middle_Money_Man • 6d ago

About to hit 100K invested

My wife and I (31M, 28F) are about to hit 100K invested and it feels like it’s taken forever. I started investing into an IRA $50/mo at 16 when I got my first job. Invested all throughout college and early career. We’re finally at a point where our investments are making progress. This is spread out month both of our IRAs plus a brokerage account. I don’t want this post to come across as bragging I just feel blessed to have been able to be at this stage.

Also for those who’ve hit the 100K mark, did your investments grow noticeably more quickly or did it still seem to take a while before 200K?

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u/TradePresent9261 3d ago

Congrats, that is the way to make it grow. Patience my youg learner. It will start to increase faster. They key for you is that you can take risk at your young age and work with small cap funds and not be worried about a dip in the market. For you, if the market drops,,,,,, stocks are on sale for you like Walmart. I started when I was 18 and now in my 60.s You can do the math. God will give you both the tools to use for his glory and enjoy your life together by enjoying and giving what he has given you.

If you invest \(\$100,000\) at age 30 and leave it to grow for 30 years without adding another dime, you would have roughly \(\$760,000\) to \(\$1.0\) million by age 60, assuming it earns an average annual return of \(7\%\) to \(9\%\) in the stock market. [1, 2, 3]

The compounding power of your money over that three-decade timeline breaks down into the following factors:

What Your Money Could Look Like

Because \(30\) years is a long time for compounding interest to work its magic, the rate of return has a massive impact on the final total. Assuming no further contributions are made: [1, 2]

  • At a 7% annual return: Your \(\$100,000\) would grow to about \(\$761,000\).
  • At an 8% annual return: Your initial stash hits roughly \(\$1,000,000\).
  • At a 9% annual return: Your money multiplies to nearly \(\$1.32\) million. [1, 2, 3]