The Increasing Decision Costs of Compounding Interest

A 30-year-old takes out a $50,000 home equity loan to put a pool in the backyard. Her twin sister Gabby invests $59,418 just in a diversified portfolio trying to grow that for the long term. Without saving another dime after only contributing those dollars those five years, Gabby would likely have over $800,000 by retirement 35 years in the future.