How can I catch up on investing for retirement? I am 35 and only have 20k in my Roth IRA. If I max out my Roth IRA from now until 65, I’ll only have about 850k in my retirement.
What else can I do to make up for lost time?
The first thing to understand is that you’re not alone. A lot of people hit their 30s and realize they’re not as far ahead as they’d hoped. Life throws curveballs—student loans, starting a family, the unexpected expenses that never seem to stop. And here’s where the anxiety kicks in: How do I catch up? How do I make up for lost time?
The temptation is to look for a shortcut. Something flashy. Maybe it’s day trading, crypto, or some “hot” investment tip promising triple-digit returns. It sounds like the solution to your problem, right? But that’s the danger. When you feel behind, the lure of getting rich quick becomes almost irresistible. The problem? Chasing those quick gains usually puts you even further behind.
Here’s why.
When you start taking outsized risks, you’re not really investing anymore—you’re gambling. Sure, you might hit it big, but you’re more likely to lose a lot of money in the process. People rarely talk about the losses. They love to share the story about the one friend who turned $10k into $100k overnight. What they don’t tell you is how five other friends lost everything by making the same bet. And now they’re not just behind—they’re starting from zero again.
So, the first step is accepting where you are. You’ve got $20k in your Roth IRA at age 35. You’re not way ahead, but you’re not hopeless either. Now the question is: What can you do next that doesn’t involve chasing illusions?
You can’t control market returns or what the economy will do. But you can control how much you save and how consistently you invest. The Roth IRA is a great start, but it’s just one tool. Maxing it out each year is a solid foundation, but you’ll need to expand beyond that.
Start by looking at other tax-advantaged accounts. Does your employer offer a 401(k) with a match? If so, that’s free money on the table. Even if you can’t max it out right away, contribute enough to get the match. Over time, that’ll add up.
It’s not the most exciting advice, but the single biggest lever you have is your savings rate. You don’t need to go to extremes, but every little bit helps. The difference between saving 10% and 15% of your income can have an enormous impact over 30 years. Don’t underestimate the compounding effect of small, consistent changes.
And here’s the magic: As your income grows—and it will, over time—if you keep your lifestyle in check and increase your contributions rather than your spending, you can catch up faster than you think.
The market rewards patience, not speed. Trying to double your money in a year by picking the next hot stock isn’t investing—it’s speculating. And speculation is a fast way to lose money. Instead, stick to a diversified portfolio. Low-cost index funds, which track the market over the long term, should be your go-to. They aren’t flashy, but they don’t have to be. Remember, the tortoise wins the race—not because it’s faster, but because it doesn’t stop.
At 35, you still have three decades to let compounding do its thing. If you’ve ever seen a compounding chart, you know that it looks like nothing’s happening in the early years, but then it starts to take off. That acceleration happens late in the game, and it’s easy to underestimate its power. The best way to let compounding work for you is to stay consistent, even when the markets are down or when it feels like your progress is too slow. Because it will feel slow—that’s the nature of long-term investing. But patience is the price you pay for getting ahead.
Another important thing: Don’t just think of investing as what you do with your money. Think of it as what you do with your time and career. Optionality—having options in life—is one of the most powerful forms of wealth. If you can develop skills that make you more valuable in the job market, or start a side hustle that generates additional income, that’s just as important as your Roth IRA balance. More income gives you more options, and more options give you more ways to catch up.
The idea isn’t to sprint and catch up by taking wild risks. It’s to play the long game. Slow and steady wins because it’s sustainable. You can’t control where you started, but you can control how you move forward from here. Max out your retirement accounts. Increase your savings rate. Invest in index funds and let compounding work for you. And don’t forget to invest in yourself along the way.
The goal isn’t to catch up as fast as possible. It’s to build a financial future that’s stable, resilient, and gives you peace of mind. And that doesn’t come from acting fast. It comes from acting smart.