A self-possessed adult woman in a clean, high-end editorial setting for Time Beats Money.

02 / 25 · Time Beats Money

She started investing at eighteen. You doubled the payment. She still finished €870,772 ahead.

When compounding has decades to work, starting earlier can matter more than contributing more.

The lesson

You can add more money later. You cannot buy back eighteen years.

Investor A puts in €250 a month from age 18 to 65. At a constant 8%, she finishes with approximately €1,553,094.

Investor B waits until 36 and invests €500 a month—twice as much—until 65. The result is approximately €682,322.

Investor A contributes €33,000 less and still finishes €870,772 ahead. Her advantage was not income. It was time.

If Investor A’s age-65 finish becomes a fixed target, Investor B needs 116 more monthly deposits—until about age 74 years 8 months—to overtake it. If Investor A leaves her portfolio invested, the €500 monthly schedule never catches it.

€1.553M€250/month from 18

€682K€500/month from 36

+€871KEarly starter's advantage

Test the head start

Change the ages. Measure the cost of waiting.

Compare two monthly contribution schedules ending at age 65.

See the curve

Eighteen years
create the separation.

The late starter pays twice as much but begins after the early curve is already bending.

€250 from 18€500 from 36

Eighteen years create the separation.
AGE	€250 from 18	€500 from 36
18	0	0
25	28028	0
30	60127	0
36	120022	0
40	179197	28175
50	443489	154011
60	1030124	433323
65	1553094	682322

Early monthly amount

Early starting age

Late monthly amount

Late starting age

Annual growth

Early starter at 65

Late starter at 65

Early starter's advantage

Continue with any AI assistant

Interrogate the advantage.

Compare two investors. A invests €250 per month from age 18 to 65. B invests €500 per month from age 36 to 65. Assume a constant 8% nominal annual return compounded monthly and month-end deposits.

Show total contributions, ending values, a year-by-year table, and why A finishes ahead. Then calculate the age at which B reaches A's fixed age-65 finish, and explain why B does not catch A if A's portfolio remains invested. Repeat at 5% and 9%, state every assumption, and give me three practice questions. Keep it educational, not personalized financial advice.

Assumptions

8% nominal annual return, compounded monthly.
Month-end deposits; both investors stop new contributions at age 65.
The catch-up illustration treats the early investor's age-65 finish as fixed; if it remains invested, the €500/month schedule does not catch it.
No fees, tax, inflation or missed contributions.
Illustrative only. Returns are not guaranteed.