California Redwoods And Retirement Accounts

Retire by investing early.

Today my family and I were in Santa Barbara, California and we made a trip to visit the Botanic Garden.  This was my first trip to the garden and I was blown away!I live in Phoenix, AZ and our botanical garden features desert plants that usually lack any real color.  In Phoenix, everything looks like it’s dead – or about to be.  It’s difficult for much to stay alive in such a dry desert climate.  Our visit to the Botanic Garden in Santa Barbara was a pleasant experience.  The garden featured lush plants, running water, and large Redwood trees.  As we were walking along, we came across one of the iconic Redwood trees and I couldn’t help but stare at the seemingly never ending height of it.

If you are unfamiliar with Redwood trees, they are the largest trees in the world and can live thousands of years.  They can grow to over 300 feet tall, (taller than a 25 story building) and the largest trees take 20 people hand in hand to span around the base of the tree.  In other words, these trees are massive!

The picture at the beginning of this article is a picture of my daughter and I standing at the base of a young redwood.  As I walked through the garden, I came across one of the cones, or seeds, of these massive trees.

The seed of a California Redwood

As I looked at this seed, the finance dork in me immediately though of retirement.  I quickly looked at my wife and showed her the seed.  “This would be perfect for my blog!” I exclaimed.  She looked at me with a half annoyed face and walked away.  I couldn’t help myself.  It was so inspiring to me to see such a small see that was responsible for the largest trees on this earth.

Starting Small

This is exactly how our retirement investments work.  The hardest part is starting.  Planting our small seeds and watching them grow into massive trees is the wonderful miracle of compound interest!

How miraculous is it?  For instance, say you put $100 a month away into a savings account for 30 years.  At the end of that 30 years, you would have saved a paltry $36,000 if you left it in a savings account.  If you invested that money and received a modest 8% interest on it, your $36,000 investment would have grown to $146,815.04 after 30 years!  Those numbers are based off of only $100 a month…

Say you started saving at 20 years old and invested that $100 a month for 40 years and retired at the age of 60.  Your $100 a month in a savings account would be worth $48,000.  Had you invested it, it could easily have grown to $335,737.25!

I hope you understand the power of compound interest and I also hope you are saving more than $100 a month.  Imagine if you were able to invest $300 a month for 30 years.  Your investment could be worth $440,445.12!

As you can tell from the above numbers, you don’t have to save massive amounts of money to gain a sizable nest egg.  Your biggest ally is time.  If you are starting late in your journey and time is not on your side, you will need to invest as much as you possibly can to make up for your lack of time.  In addition to these numbers, they do not include reinvested dividends so chances are your nest egg would be even larger 🙂

Get Rid Of That Debt

So, if $300 a month can get you to nearly half a million in retirement, imagine what double or triple that would be?  This is where the elimination of debt comes into play.  How much is your monthly car payment?  Hopefully you can say “zero”, but if not, imagine paying yourself a considerably large retirement rather than paying interest to the banking industry.

I love running numbers, so to appease my curiosity I put in a few compound interest scenarios.

$500 a month for 30 years, 8% interest= $734,075.21

$1,000 a month for 30 years, 8% interest = $1,468,150.42!

$1,000 a month may seem like a lot but if you set yourself up and contribute to a pretax account, you may hardly notice the investment coming from your take home pay.  $12,000 a year is very doable for most people, its just a matter of making it a priority.

If you need a reminder on how to destroy that debt, refer to my related article: Arrest Your Debt – The Debt Payoff Playbook

It’s Your Turn To Start Winning!

When you start to feel upset with your current financial situation, remember that even the mighty Redwood started out as just a tiny seed.  The hardest part is planting that seed and remembering to water it on a regular basis.  You can do it my friends, it’s time to change your life and win in retirement.  I’m proud of you already for reading this article to the end.  Stick with it and let me know if there is anything I can do to help you succeed!  Keep it up, you work too hard to be this broke!


If you found this article helpful, please share it across social media.  Also, I enjoy reading your comments, please comment below if you have anything to add or have any questions!

If you’re ever in the area, I highly recommend the Santa Barbara Botanic Garden.  For more information, visit them here: Santa Barbara Garden


Author: Ryan

Hi!  My name is Ryan and I have a passion for personal finance and education.  I am married and have three children, a girl and two boys all under the age of ten.  My wife stays home with the kids so it can be challenging to live off one income.  Much of what I write is based off my personal experiences and what I have learned in the course of my life. My financial journey began when my wife and I saved up a sum of money and I didn't know who I could trust to invest it.  After several interviews with financial advisers, I still didn't feel like I could trust anyone.  That began my journey to educate myself by reading every finance book I could get my hand on and by attending financial seminars.  After getting a good handle on debt, finance, and investments, I decided to start this blog as a resource for others who find it difficult to trust people with their money. I recently started writing this blog about how to get out of debt and start investing to create the future you deserve. I have been in law enforcement for 14 years and I have seen the devastation left behind by people who mismanage their finances.  I started this blog because I want to help as many people I can by educating them on common sense money management. As far as my formal education, I obtained a Bachelor of Science in Education and a Master of Administration Degree from Northern Arizona University.  I am an adjunct professor at a local community college and I have been a student of finance for many years. This blog is dedicated to those looking to eliminate their debt and to mold a new way of thinking, living, and spending. Education, focused on financial stability and wealth, is the main purpose of this blog. This website is a new journey for me and I know there are areas that I could improve.  Please feel free to reach out to me with any critiques - I would love the feedback so I can be as effective as I possibly can and provide the most relevant information.  I look forward to writing for you and learning with you! If you have any questions or comments, I would love to hear from you! -Ryan

3 thoughts on “California Redwoods And Retirement Accounts”

    1. In simple terms, say you have $100 and make 5 bucks in interest. If you leave your money there, you have $105 and start earning interest on the interest. Compound interest means earning interest on interest as it grows.

      Liked by 1 person

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