What kind of annual return can I expect from a Roth IRA?

Answer 1

Look at the average returns of whatever fund you've invested in over the past ten years. There's your answer.

Answer 2

A Roth IRA is not an investment. Therefore, Roth IRA's don't have any particular return. The Roth IRA is simply refers to the way the account is treated for tax purposes.

Think of the Roth IRA as a basket, into which you put your choice of investments. Some people use their Roth IRA to hold bank CD's. Other people will hold mutual funds. Still others choose to put Stocks or Bonds into their Roth IRA basket.

The return you get on the account will depend on what kind of investment you put into it. If you don't know what is inside your Roth, talk to the institution that's holding it and ask them. You have a right to know.

Answer 3

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RE:
What kind of annual return can I expect from a Roth IRA?

Answer 4

It depends on your choice of investment. The Roth IRA is just a tax-free vehicle. If you invest in stocks, a reasonable long run expectation is around 10%/year. If you went out and bought a 30-yr government bond, you could expect just over 5%/year for the next 30 years.

Answer 5

That depends entirely upon what you are investing in. I'm hitting close to 35% last year and this year on my 401(k) with a modestly aggressive mix of equity funds. If I had chosen a very conservative money market fund, it would be little over 1%. If I had gone with treasuries it would be about 1/2%. You should get periodic statements showing the performance of your account. It should show how your funds are doing as well as other funds that are available to you.

Answer 6

It is usaully and adjustable rate savings vehicle. It can range from 1-15% depending on the market.