Roth IRA benefits
December 16, 2019
I’m Miriam Neff-with STARTING OVER FINANCIALLY, and I’m Valerie Neff Hogan, and we’re here to talk about money
M We’ve shared the idea of giving Roth IRA’s as Christmas gifts to family members. Its a tax advantaged way to help provide for their retirement. A young 20 something person earning $5,500.00 this year is eligible for you to open a Roth with that amount.
V Let’s look at what Roth IRA’s can do. Assume you save $5,500.00 starting at age 30, and you retire at age 68. If you were to earn a 7 percent annual return, that $5,500 annual savings would grow from the $209,000 total put in, to over $1 million. Wise move.
M It may not be that you can give such a gift. Pick and plan carefully for what ever that might be.