Here's What 5 Years of Not Investing Has Cost You, in 2026 Dollars

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I’ve been buying index funds for over a decade and have a small understanding of what compounding can do when you leave it alone.

According to S&P Global, the S&P 500’s five-year annualized return is 12.44%. That works out to a 79.72% total return since mid-May, 2021.

For context, the index’s long-term 100-year average is closer to 10.4%, so the past five years have been an unusually strong stretch — and missing it has a real price tag.

Here’s what investing would have returned.

What a lump-sum investment would have grown to

If you’d dropped a lump sum into a basic S&P 500 index fund in May 2021 and just left it alone, here’s about where you’d stand today:

Data source: Author’s calculations based on 12.44% annual return.

If you’ve been sitting on cash for the past five years, those numbers are probably painful to look at. A $10,000 investment would have grown by nearly $8,000.

Most people don’t have a lump sum sitting around, though. The more realistic path is investing a bit every month.

What investing monthly would have grown to

Here’s what consistent monthly contributions would have looked like at that same 12.44% annualized return over the past five years:

Data source: Author’s calculations based on 12.44% annual return.

Putting away just $200 a month (about $7 a day) into the S&P 500 would be worth over $15,000 today. Bump that to $500 a month and you’re looking at more than $38,000.

The main takeaway: you don’t need a huge salary or a windfall to build real wealth. Small, consistent contributions add up massively over time, especially when the market does the heavy lifting for you.

Compare the top-rated brokers in 2026 and start investing today.

The biggest mistake people make investing

The trap I see people fall into the most is trying to time the market. They look at the all-time-highs and decide the market must be “due” for a crash, and convince themselves the smart play is to wait for the next crash before they jump in.

That’s market timing, and it’s the most expensive habit in investing. Nobody — not me, not your financial advisor, not the loudest voice on financial TV — knows exactly what the market is going to do over the next five years.

What we do know is that the S&P 500 has averaged about 10.4% annually over the past century, which includes the Great Depression, the dot-com crash, the 2008 financial crisis, and the 2020 pandemic. It’s not a guarantee for future returns, but the long-term arc is hard to argue with.

Where to put your money now

If you’re ready to stop watching from the sidelines, here’s the order of accounts I’d point most people to:

1. Your 401(k). Contributions grow tax-efficiently, and are locked up until retirement — so there’s less temptation to dip in. An employer match is a bonus on top.

2. An IRA or Roth IRA. Both let your money grow with tax advantages. A traditional IRA gives you a tax deduction now, while a Roth lets your money grow tax-free for life. Either way, it’s a powerful long-term wealth builder on top of your 401(k).

3. A taxable brokerage account. For anything beyond that — or if you have a lump sum you want to invest now, a regular brokerage account is great. There are no contribution limits, and the money is accessible whenever you need it.

For where to actually open that account, Fidelity just won our Best Stock Broker Overall award for 2026. Its low-cost index funds and easy-to-use platform make it a strong choice whether you’re starting an IRA or a taxable brokerage.

If you’re newer to investing and want something simpler to start with, this broker took home our Best Stock Broker for Beginners award, with fractional shares that let you start with whatever dollar amount you have handy.

The bottom line

Looking back at five years of missed gains is painful. But staring at the chart isn’t going to put any money in your account — only new investments going forward will change your financial picture.

The investors who’ll feel like geniuses in 2031 are the ones who stop waiting and start buying today, even if they’re starting smaller than they wish they were.

Pick a low-cost brokerage account that fits your situation, automate a monthly contribution you can actually stick with, and let compounding do the work.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Joel O’Leary has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.