When does growth overtake contributions?
Usually between years 12 and 18 at 7–8% returns. That crossover point is when the portfolio starts earning more per year than you add.
See a year-by-year projection of contributions versus compound growth, and how a small increase in the monthly amount changes your end balance.
Balance(year n) = Balance(n−1) × (1 + r) + annual contributions. Growth share = (final balance − total contributed) ÷ final balance.
$300/month at 8% reaches about $447,000 in 30 years. Raising it to $400 adds roughly $149,000 — the extra $100 compounds into 33% more wealth.
Usually between years 12 and 18 at 7–8% returns. That crossover point is when the portfolio starts earning more per year than you add.
Yes. Indexing your monthly amount to salary growth of 2–3% a year typically adds 25–35% to the final balance versus a flat contribution.
Sequence matters: a crash early is recoverable and even helpful for buyers, while one in the final five years does the most damage — which is why allocations de-risk near the goal.