This is so true. Just saving 10% to 15% of your pay check can do wonders. Einstein once said “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” From what I read, it can take 5 to 10 years to get the first $100k (I was more in the 5 year range). But once you get over that, getting the next $100k will go so much quicker. I had fun tracking it once it stated to roll.
I'm curious what people would do here. Does it make sense for me to put more money into a 529 for my kids college? My kids are 4, 2, and 2. My dad just transferred money left over from my 529 and according to my financial advisor, it would cover half of their education (thanks to compounding growth). I calculated that I would be 58 when my twins would be graduating. I have my 401k (mostly Roth...but the employee match and profit share is traditional) and my Roth IRA that should be fund the difference without really affecting my retirement. We also have my wife's retirement...but she is 1.5 years younger. I could just take a loan out (if I can't cash flow it at that point in my career) and pay it in full when I turn 59.5. Is this crazy? It would still be after tax growth. Plus it wouldn't then tie the money up into education (if they choose to not get a 4-year degree).