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Table for Age 2 - 10 - 20 - 25 - 30 - 35- 40 - 49 - 55
 

Investment Table for an Individual Starting to Invest at 55 Years Old

The retirement table below shows the distinct disadvantages of beginning to invest for a retirement plan when you are older. This chart is a hypothetical representation of a person who starts investing at the age of 55 at the beginning of the year $2000 annually through age 69. This example uses a hypothetical annual investment growth rate of 8%. The hypothetical plan is as if someone was to invest in a tax free investment such as a Roth Ira and not removing any money and having tax free growth until age 69. If the investement is an IRA or other retirement plan it is important to check with your accountant or the IRS tax table to see how much must be removed each year to avoid extra taxes and penalties. This table just shows how a tax free investment would grow with an 8% growth rate and how taking withdrawals would affect the asset value. It is not intended to be followed. It is intended to give a person an idea of how much they could aquire and take out with these hypothetical rates. At the end of age 69 if this individual had continued to invest annually $2000 and had an annual growth rate of 8% their total investment value would be $54,100. At which time they would have invested $30,000 (15 years x $2000). After that, the retirement plan shows this person withdrawing $5,000 annually until age 90 at which time they would still have $47. Notice how compared to the scenerio of a person who starts at age 20 investing is able to take out $70,000 after age 65 and at age 100 still has plenty of money. This shows the importance of people beginning there savings at an early age. Once again, this hypothetical continues to use an annual rate of return of 8% with a tax free investment.

 
Age
Investment Beginning of Year
Beginning of Year Value After Investment Before Withdrawal
Rate of Growth
Beginning of Year Withdrawal
Value End of Year
55
$2,000
$2,000
8%
$0
$2,160
56
$2,000
$4,160
8%
$0
$4,493
57
$2,000
$6,493
8%
$0
$7,012
58
$2,000
$9,012
8%
$0
$9,733
59
$2,000
$11,733
8%
$0
$12,672
60
$2,000
$14,672
8%
$0
$15,846
61
$2,000
$17,846
8%
$0
$19,273
62
$2,000
$21,273
8%
$0
$22,975
63
$2,000
$24,975
8%
$0
$26,973
64
$2,000
$28,973
8%
$0
$31,291
65
$2,000
$33,291
8%
$0
$35,954
66
$200
$36,154
8%
$0
$39,047
67
$2,000
$41,047
8%
$0
$44,330
68
$200
$44,530
8%
$0
$48,093
69
$2,000
$50,093
8%
$0
$54,100
70
$0
$54,100
8%
$5,000
$53,028
71
$0
$53,028
8%
$5,000
$51,870
72
$0
$51,870
8%
$5,000
$50,620
73
$0
$50,620
8%
$5,000
$49,270
74
$0
$49,270
8%
$5,000
$47,811
75
$0
$47,811
8%
$5,000
$46,236
76
$0
$46,236
8%
$5,000
$44,535
77
$0
$44,535
8%
$5,000
$42,698
78
$0
$42,698
8%
$5,000
$40,714
79
$0
$40,714
8%
$5,000
$38,571
80
$0
$38,571
8%
$5,000
$36,256
81
$0
$36,256
8%
$5,000
$33,757
82
$0
$33,757
8%
$5,000
$31,057
83
$0
$31,057
8%
$5,000
$28,142
84
$0
$28,142
8%
$5,000
$24,993
85
$0
$24,993
8%
$5,000
$21,593
86
$0
$21,593
8%
$5,000
$17,920
87
$0
$17,920
8%
$5,000
$13,954
88
$0
$13,954
8%
$5,000
$9,670
89
$0
$9,670
8%
$5,000
$5,044
90
$0
$5,044
8%
$5,000
$47
91
$0
$47
8%
$48
-$1
This illustration is not suppose to be indicative of any particular investment and is shown only as one possible scenerio for a hypothetical plan. Investments and returns vary according to their plans. Please speak to your investment advisor before making any investments. Information and the investment tables are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regard to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

Some other scenerios using different hypothetical ages, growth rates and withdrawals.

Age 2, $600 annual investment, 8% return, and $88,000 withdrawal

Age 10, $2,000 annual investment, 8% return, and $92,000 withdrawal

Age 20, $2,000 annual investment, 8% return, and $70,000 withdrawal

Age 25, $2000 annual investment, 8% return, and $48,000 withdrawal

Age 30, $2,000 annual investment, 8% return, and $30,000 withdrawal

Age 35, $2,000 annual investment, 8% return, and $21,000 withdrawal

Age 40, $2,000 annual investment, 8% return, and $13,500 withdrawal

Age 49, $2,000 annual investment, 8% return, and $15,000 withdrawal

Age 55 $2000 annual investment, 8% return, and $5,000 withthrawal

 

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