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

Investment Table for 40 Year 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 40 at the beginning of the year $2000 annually through age 65. 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 65. 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 65 if this individual had continued to invest annually $2000 and had an annual growth rate of 8% their total investment value would be $172,702. At which time they would have invested $52,000 (26 years x $2000). After that, the retirement plan shows this person withdrawing $13,500 annually until age 100 at which time they would still have $41,073. 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
40
$2,000
$2,000
8%
0
$2,160
41
$2,000
$4,160
8%
0
$4,493
42
$2,000
$6,493
8%
0
$7,012
43
$2,000
$9,012
8%
0
$9,733
44
$2,000
$11,733
8%
0
$12,672
45
$2,000
$14,672
8%
0
$15,846
46
$2,000
$17,846
8%
0
$19,273
47
$2,000
$21,273
8%
0
$22,975
48
$2,000
$24,975
8%
0
$26,973
49
$2,000
$28,973
8%
0
$31,291
50
$2,000
$33,291
8%
0
$35,954
51
$2,000
$37,954
8%
0
$40,991
52
$2,000
$42,991
8%
0
$46,430
53
$2,000
$48,430
8%
0
$52,304
54
$2,000
$54,304
8%
0
$58,649
55
$2,000
$60,649
8%
0
$65,500
56
$2,000
$67,500
8%
0
$72,900
57
$2,000
$74,900
8%
0
$80,893
58
$2,000
$82,893
8%
0
$89,524
59
$2,000
$91,524
8%
0
$98,846
60
$2,000
$100,846
8%
0
$108,914
61
$2,000
$110,914
8%
0
$119,787
62
$2,000
$121,787
8%
0
$131,530
63
$2,000
$133,530
8%
0
$144,212
64
$2,000
$146,212
8%
0
$157,909
65
$2,000
$159,909
8%
0
$172,702
66
$0
$172,702
8%
$13,500
$171,938
67
$0
$171,938
8%
$13,500
$171,113
68
$0
$171,113
8%
$13,500
$170,222
69
$0
$170,222
8%
$13,500
$169,259
70
$0
$169,259
8%
$13,500
$168,220
71
$0
$168,220
8%
$13,500
$167,098
72
$0
$167,098
8%
$13,500
$165,886
73
$0
$165,886
8%
$13,500
$164,576
74
$0
$164,576
8%
$13,500
$163,163
75
$0
$163,163
8%
$13,500
$161,636
76
$0
$161,636
8%
$13,500
$159,986
77
$0
$159,986
8%
$13,500
$158,205
78
$0
$158,205
8%
$13,500
$156,282
79
$0
$156,282
8%
$13,500
$154,204
80
$0
$154,204
8%
$13,500
$151,961
81
$0
$151,961
8%
$13,500
$149,538
82
$0
$149,538
8%
$13,500
$146,921
83
$0
$146,921
8%
$13,500
$144,094
84
$0
$144,094
8%
$13,500
$141,042
85
$0
$141,042
8%
$13,500
$137,745
86
$0
$137,745
8%
$13,500
$134,185
87
$0
$134,185
8%
$13,500
$130,339
88
$0
$130,339
8%
$13,500
$126,187
89
$0
$126,187
8%
$13,500
$121,701
90
$0
$121,701
8%
$13,500
$116,858
91
$0
$116,858
8%
$13,500
$111,626
92
$0
$111,626
8%
$13,500
$105,976
93
$0
$105,976
8%
$13,500
$99,874
94
$0
$99,874
8%
$13,500
$93,284
95
$0
$93,284
8%
$13,500
$86,167
96
$0
$86,167
8%
$13,500
$78,480
97
$0
$78,480
8%
$13,500
$70,179
98
$0
$70,179
8%
$13,500
$61,213
99
$0
$61,213
8%
$13,500
$51,530
100
$0
$51,530
8%
$13,500
$41,073
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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