Choices Tree — “What can I pick?” and “What does it likely become at 62?” LOCKED: age 22→62 LOCKED: $1,000/mo +5%/yr Assumptions: History-style

🤝 Super-Simple Guide

• 🌱 Start & grow: You put in $1,000/month at age 22 and get a +5% raise each year. Time does most of the work.
• 🧺 Account wrapper:
  • 🟩 Roth = pay tax now, then growth/withdrawals are tax-free later.
  • 🟨 Pre-Tax (401k/Traditional IRA) = no tax now; we estimate −20% at retirement for taxes.
• 🧭 How to read results:
  • Typical = middle-of-the-road finish if markets act like history.
  • Tough decade = a rough patch along the way; staying the course matters.
  • Great run = markets were friendly to you.
  • 💵 Today’s dollars = the typical number adjusted by 2.5%/yr inflation.
• 🧘 Pick your vibe:
  • 60/40 Balanced → 🧊 calmer compounding.
  • S&P 500 → 🇺🇸 broad, simple single-fund choice.
  • QQQ → 🚀 growth flavor, bumpier ride.
  • Blue-chip → big, steady names (still stocks).
  • US + International → 🌍 some “rest of world.”
  • High-growth fund → ⚠️ can soar or lag; manager & fees matter.
  • Bonds → 🛟 smoother but usually smaller finish.
• 💡 If you have extra beyond the 401(k): 1) Grab full employer match → 2) Max a Roth IRA → 3) Raise 401(k) → 4) Low-cost taxable for overflow.
• ⚠️ Reality check: These are history-style simulations, not promises. Fees, behavior, and life events matter.