Here's How Much Experts Say A $100 Investment Could Return In A Lifetime

You could spend $100 on a moderately priced dinner for two, a couple of video games, or a pair of Levi’s jeans. Or you could invest it. The biggest obstacle to long-term wealth-building is often the perception that you need to start with a lot and that $100 is not enough. While $100 alone won’t set you up for retirement, consistently investing $100 could change your life. 

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Before you buy that next pair of designer jeans or order UberEats for the fourth time this week, consider how much $100 could be worth to you in the long term. That’s the power of compound interest and how you invest it. Because of these variables, experts can’t give you a single number for how much $100 invested could return.

To answer the question, first, the facts: the average human lifespan in the U.S. is currently just over 76 years. Assuming that it’s not unreasonable for the average 18-year-old to have $100 to invest, either from a part-time job or a graduation gift, the maximum investment time would be 58 years. 

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From 1966 to today (58 years), $100 in the S&P 500 would have increased by 5,490.69%. That $100 would be worth $29,573 today. On the other hand, if you invested in real estate, assuming an average annual return of 5.5%, you’d have $2,232 after 58 years. 

Since 1970, a $100 investment in gold would be worth $5,545, and $100 in corporate bonds could be worth $7,775. While these returns highlight the significant benefit of investing, the real power comes from consistent small investments. Returns vary from year to year, but long-term compound interest still reigns supreme. 

A few more figures to consider, taken from a 30-year period from 1980 to 2010:

• The average annualized growth rate of the S&P 500 was 8.15%
• The Dow Jones averaged 8.81% 
• Nasdaq rose 9.51% per year.
• Bonds returned an average of less than 3% 
• The average inflation rate was 3.30% per year

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How $100 Could Become $1 Million

If, instead of $100 one time, you invested just $100 a month for 58 years, with an average interest rate of 7%, you’d have $855,564. 

But it gets better. Suppose you start investing at age 20 with the plan to retire at age 65. For the first 10 years, while you’re in college and building your career, you invest $100 a month. After 10 years, you increase your monthly contributions to $500. That’s doable on most salaries. At age 65, you’d have just over $1 million. 

Is that enough? Assuming an annual withdrawal of 4%, you’d need to live on $40,000 a year, too little for many. But it’s doable if you want a simple life and have a paid-off home. 

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How $100 Could Become Nearly $2 Million

Here’s another example to nearly double your wealth. Suppose you start with $100 a month for five years, increase to $500 a month for the next five years, and then up your savings to $750 a month. You’d have $44,380 saved by age 30 and over $1.7 million by retirement, more than the current Federal Reserve suggested retirement savings. 

The next time you think you don’t have enough to get rich, think again. Just $100 invested consistently could make you a millionaire. Start with $100 today, and see how much you can find in your budget to build your future millionaire lifestyle. 

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