Twins, Apart — How Ten Early Years Beat Thirty Late Ones

The Players

Benson

— The Early Starter —

At age 25, Benson starts saving $5,000 a year. He does this for ten years — through age 34 — then never adds another dollar. He just lets it ride.

Ada

— The Diligent Latecomer —

At age 35, Ada starts saving $5,000 a year. She does this for thirty years — every single year through age 64. She contributes three times as much as Benson.

II.

The Stage

— Before You Watch · Place Your Bet —

Benson puts in $50,000 total. Ada puts in $150,000.
Both retire at 65. Who has more, and by how much?

Same 8% annual return. Same retirement age. Ada contributes three times as much. Place your bet — there's no penalty for being wrong.

A. Ada — by a lot. She contributed 3× as much. B. Ada — by a little, maybe 10–20% C. They end up tied D. Benson — by a little, maybe 10% E. Benson — by 30% or more

Portfolio Value by Age | Age 25 — 65 | 8% assumed annual return

Benson — saves age 25–34, then nothing

Ada — saves age 35–64, every year

As of age

YEAR 1 / 40

Investor	Contributed	Balance	Multiple
Benson	$0	$0	—
Ada	$0	$0	—

Scrub

— The Verdict —

…

III.

The Reckoning

Age 65 Same returns. Same retirement age. Three times the contributions for the latecomer. Yet the early starter walks away with more.

Investor	Strategy	Total Contributed	Balance at 65	Multiple
Benson	Save $5K/yr ages 25–34, then never contribute again	—	—	—
Ada	Save $5K/yr ages 35–64, every single year	—	—	—