Mary is an investment banker who enjoys the finer things in life
and doesn't mind spending her $150,000 salary on them. Her only savings
is the $4500.00 she puts into her company 401K plan in order to get the
50% match up to 3% of her salary (for a total of $6750.00 per year).
Jill is a freelance technical writer who earns $100,000 per year and
puts $10,000 into her SEP IRA every year.
At the end of 5 years assuming that both accounts return 10% per year,
Mary's account will be worth $41,209 and Jill's account will be worth $61,051.
At the end of 10 years, Mary's account will be worth $107,577 and Jill's
account will be worth $159,374.
more money truths