On my last post, "Jeff's Stupid Topic #23 – Coffee, Tea, or $4million tax-free?" I explained that by investing $100 a month in a mutual fund yielding 12% rate inside Roth IRA and increase contribution by 3% a year from age 19, you will accrue almost $4 million at age 66.
Well, couple of you did not think you could start at age 19 because they are not so young anymore. OK, let's use ages 29 and 39. If you start investing $100 a month in a mutual fund inside Roth IRA from 29, you will accrue almost $1.2 million at 12% investment rate at age 66. Likewise if you start at age 39, you will accrue almost $341,000 at age 66.
But the trick is not to start investing a mere $100 a month, I suggest that you contribute $200 or $300 each month, and increase the amount by 3% a year.
- If you start investing $200 a month in a mutual fund inside Roth IRA from 29, you will accrue almost $2.37 million at 12% investment rate at age 66. Likewise if you start at age 39, you will accrue almost $681,000 at age 66.
- If you start investing $300 a month in a mutual fund inside Roth IRA from 29, you will accrue almost $3.55 million at 12% investment rate at age 66. Likewise if you start at age 39, you will accrue almost $1 million at age 66.
The key here is to start investing NOW. Get rid of your stupid debts, and start saving for something BIG just by giving up few luxuries each month!
REMEMBER - THIS IS ALL TAX FREE MONEY!
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