Investments Personal Finance Retirement

Q&A: Why should someone invest?

Someone should invest if they want to efficiently save money up for a long-term specific goal (retirement, a large purchase, or just to accumulate excess wealth for any spending purpose). On average and over time, investing in a diversified basket of stocks has more return than just saving in a checking or savings account.

Below is a table representing the sum of money one would have after various numbers of years (left column) if they invested $100 per month into an account at various rates of annual return (top row):

Years3%5%7%9%
5$6,465 $6,801 $7,159 $7,542 
10$13,974 $15,528 $17,308 $19,351 
15$22,697 $26,729 $31,696 $37,841 
20$32,830 $41,103 $52,093 $66,789 
25$44,601 $59,551 $81,007 $112,112 
30$58,274 $83,226 $121,997 $183,074 
35$74,156 $113,609 $180,105 $294,178 

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