Money Monday: The Power of a Roth IRA: $20 a Day for $1.3 Million at Retirement
Today, we're discussing one of the most potent financial products that anyone can use to invest in their future, with huge upside and tax-free potential: the ROTH IRA.
When it comes to building wealth for your future, it’s easy to get overwhelmed with complicated investment strategies. But sometimes, the most straightforward plan is the most effective—and that’s precisely the case with a Roth IRA.
For 2024, the Roth IRA contribution limit is $7,000 per year. That’s:
$585 a month
$135 a week
$20 a day
It may not seem like much, but the impact of maxing out your Roth IRA in a well-performing mutual fund for 30 years can be astounding.
In total, you’d only contribute $210,000 of your own money over three decades. But thanks to the power of time and compound interest (historical market average 9% annually), you could have $1,300,000 tax-free by retirement!
That’s right—tax-free growth and tax-free withdrawals in retirement.
Why a Roth IRA is a Game-Changer:
1) Tax-Free Growth: Your investments grow without being taxed each year, which allows your money to grow faster.
2) Flexibility: You can withdraw your contributions (not your earnings) at any time without penalties, giving you access to your money in case of emergencies.
3) Long-Term Security: By consistently investing small amounts, you let time and compound interest do the heavy lifting.
Don’t let the idea of saving for retirement seem daunting. By simply investing $20 a day into a Roth IRA, you can potentially build over a million dollars in wealth by the time you retire.
If you want to know more and get started today, EVG Solutions is here to help you set up a plan that fits your financial situation and future goals.
Ready to secure your financial future? Let’s start today!