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WTF? By my calculation, John will have about $350,000, depending on the compounding formula. Unless they're making that $100 contribution inflation adjusted or something. Or he's starting with $30,000 in his pocket.
Yep! Inflation adjusted. However $100 a month for your entire retirement is pretty small. Here's another look with a little more put into investing: http://www.getrichslowly.org/blog/2008/04/02/the-extraordinary-power-of-compound-interest/ And again, this is doing it all yourself, in a Roth, no company match. Gets a lot easier if your company helps.