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50cents · 10-31-2007, 03:25 PM

Will this do me much good?<br />I also will be putting money into 401K as well as savings too.<br />Can anyone tell me about how much money I would have by retirement with the Roth IRA.<br />

big$saver · 10-31-2007, 03:25 PM

Putting money into savings is always a good thing, and $100 a month is nothing to sneeze at. That's $1200 a year, not including gains and interest! That money will compound and snowball into many thousands of dollars before you know it.

It's impossible to know how much you could have by retirement, especially since you're so young. You may put more or less in there every year; you may one day make too much to contribute to a Roth at all; you may earn 15% a year on average or you may earn 5%. All these factors drastically affect your investment outcome. You can use a calculater (google "savings calculator) online to get a rough estimate how much you could have.

The important thing is to just keep putting money away. Don't worry now about how much it will amount to--just put away as much as you can. The more you save/invest, the more you'll end up with.

Dani_Garcia · 10-31-2007, 03:25 PM

The guy above me gave you the best advice.

ermak · 10-31-2007, 03:25 PM

Yes, it will do you a LOT of good....
Open your ROTH with an " investment " house...not the bank. Log on to E-trade or Fidelity ...( you may have to save awhile first and then open an account with a lump sum...but your return will be MUCH greater in the long run)
About how much? Go to : http://www.finishrich.com/free_resources/lattecalculator.php?
You can put in different amounts, different return percentages,and your time span....compare 5% ( a bank rate) to 8, 9 , or 12% that you could expect from a " fund" with Fidelity or Schwab

kevin · 10-31-2007, 03:25 PM

First of all, opening a Roth is one of the best things you can ever do. Definitely do it. Your question doesn't provide enough info to give you the answer you want. You need to learn about investing. Not brain surgery. I say keep it simple.
Go for broad based index mutual funds like they offer at Fidelity or Vanguard. Where you put your money makes a huge difference. Most people put their retirement money into super safe things that offer little return. They are afraid of losing. Go with the index funds and over the long haul you will do great. If you don't take my advice fine, but by all means do open that account and make contributions.

BOB+ · 10-31-2007, 03:25 PM

23 years old is a great time to start investing for retirement. If you plan on retiring at 60 and you put $100 a month in until retirement, you will have approximately $ 819,258.55 in that account by the time you turn 60. And that money will be completely tax free. If you double that and put in 200 a month, you would have $ 1,638,517.11 in that account by retirement.

TAX FREE

cocojambo · 09-14-2010, 04:39 PM

Invest in a mutual fund that yields a good return every year, has a solid history (at least 20 years) and pays quarterly interest payments. An example is the Vanguard Retirement 2050... looks pretty good as it has a 0.20% expense ratio which is lower compared to most mutual funds.

Vanguard Target Retirement 2050 Fund (VFIFX)

Product summary

Fund facts

* Fund of funds that can be appropriate if you’re planning to retire between 2048 and 2052.
* Includes global stocks, plus U.S. Treasury and high-quality corporate bonds.
* Currently invests almost entirely in stocks, giving your savings a high potential for growth.
* Begins annually reducing stocks and increasing bonds around 2026.

Or you could invest in fixed income bonds or mutual funds that pay out quarterly interest payments.

Look at power of compound interest below

Billy at 25, puts away $300 every month to his Roth IRA until he is 40. He would have put in $54,000 over those 15 years but the account would then be worth $104,500.

If Billy never makes another contribution beyond age 40, (assuming again average annual return of 8%), compound interest after another 30 years will make his account worth $1,050,000.

Jimbo, never wanted to think about his retirement. Then by his mid-life crisis realized he needed a nest egg. At age40, he began investing that same $300 a month for the next 30 years. After investing $108,000 cash, his account is only worth $450,000 at age 70.

So even though Jimbo invested twice as much money as Billy he ended up with half as much simply because Billy had longer time for compounding to work in his favor. Time is key here, not money.

10-31-2007, 03:25 PM	#1
50cents Greenhorn Join Date: Jul 2006 Posts: 16 Rep Power: 0	I want to start a Roth IRA. I plan on putting at least $100 a month in it. I am 23 years old.? Will this do me much good?<br />I also will be putting money into 401K as well as savings too.<br />Can anyone tell me about how much money I would have by retirement with the Roth IRA.<br />

10-31-2007, 03:25 PM	#2
big$saver Piggy Bank Join Date: Jul 2006 Posts: 59 Rep Power: 6	I want to start a Roth IRA. I plan on putting at least $100 a month in it. I am 23 years old.? Putting money into savings is always a good thing, and $100 a month is nothing to sneeze at. That's $1200 a year, not including gains and interest! That money will compound and snowball into many thousands of dollars before you know it. It's impossible to know how much you could have by retirement, especially since you're so young. You may put more or less in there every year; you may one day make too much to contribute to a Roth at all; you may earn 15% a year on average or you may earn 5%. All these factors drastically affect your investment outcome. You can use a calculater (google "savings calculator) online to get a rough estimate how much you could have. The important thing is to just keep putting money away. Don't worry now about how much it will amount to--just put away as much as you can. The more you save/invest, the more you'll end up with.

10-31-2007, 03:25 PM	#3
Dani_Garcia Greenhorn Join Date: Jul 2006 Posts: 21 Rep Power: 6	I want to start a Roth IRA. I plan on putting at least $100 a month in it. I am 23 years old.? The guy above me gave you the best advice.

10-31-2007, 03:25 PM	#4
ermak Greenhorn Join Date: Jul 2006 Posts: 20 Rep Power: 6	I want to start a Roth IRA. I plan on putting at least $100 a month in it. I am 23 years old.? Yes, it will do you a LOT of good.... Open your ROTH with an " investment " house...not the bank. Log on to E-trade or Fidelity ...( you may have to save awhile first and then open an account with a lump sum...but your return will be MUCH greater in the long run) About how much? Go to : http://www.finishrich.com/free_resources/lattecalculator.php? You can put in different amounts, different return percentages,and your time span....compare 5% ( a bank rate) to 8, 9 , or 12% that you could expect from a " fund" with Fidelity or Schwab

10-31-2007, 03:25 PM	#5
kevin Greenhorn Join Date: Jul 2006 Posts: 26 Rep Power: 6	I want to start a Roth IRA. I plan on putting at least $100 a month in it. I am 23 years old.? First of all, opening a Roth is one of the best things you can ever do. Definitely do it. Your question doesn't provide enough info to give you the answer you want. You need to learn about investing. Not brain surgery. I say keep it simple. Go for broad based index mutual funds like they offer at Fidelity or Vanguard. Where you put your money makes a huge difference. Most people put their retirement money into super safe things that offer little return. They are afraid of losing. Go with the index funds and over the long haul you will do great. If you don't take my advice fine, but by all means do open that account and make contributions.

10-31-2007, 03:25 PM	#6
BOB+ Piggy Bank Join Date: Jul 2006 Posts: 96 Rep Power: 6	I want to start a Roth IRA. I plan on putting at least $100 a month in it. I am 23 years old.? 23 years old is a great time to start investing for retirement. If you plan on retiring at 60 and you put $100 a month in until retirement, you will have approximately $ 819,258.55 in that account by the time you turn 60. And that money will be completely tax free. If you double that and put in 200 a month, you would have $ 1,638,517.11 in that account by retirement. TAX FREE Last edited by briansol; 01-30-2009 at 06:26 PM.

09-14-2010, 04:39 PM	#7
cocojambo Greenhorn Join Date: Sep 2010 Posts: 1 Rep Power: 0	Invest in a mutual fund that yields a good return every year, has a solid history (at least 20 years) and pays quarterly interest payments. An example is the Vanguard Retirement 2050... looks pretty good as it has a 0.20% expense ratio which is lower compared to most mutual funds. Vanguard Target Retirement 2050 Fund (VFIFX) Product summary Fund facts * Fund of funds that can be appropriate if you’re planning to retire between 2048 and 2052. * Includes global stocks, plus U.S. Treasury and high-quality corporate bonds. * Currently invests almost entirely in stocks, giving your savings a high potential for growth. * Begins annually reducing stocks and increasing bonds around 2026. Or you could invest in fixed income bonds or mutual funds that pay out quarterly interest payments. Look at power of compound interest below Billy at 25, puts away $300 every month to his Roth IRA until he is 40. He would have put in $54,000 over those 15 years but the account would then be worth $104,500. If Billy never makes another contribution beyond age 40, (assuming again average annual return of 8%), compound interest after another 30 years will make his account worth $1,050,000. Jimbo, never wanted to think about his retirement. Then by his mid-life crisis realized he needed a nest egg. At age40, he began investing that same $300 a month for the next 30 years. After investing $108,000 cash, his account is only worth $450,000 at age 70. So even though Jimbo invested twice as much money as Billy he ended up with half as much simply because Billy had longer time for compounding to work in his favor. Time is key here, not money. Last edited by briansol; 09-16-2010 at 01:40 AM.

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