I have an Roth IRA account. However, I don't have that nearly that much in my Roth IRA. I read this and I was wondering if this is really possible? How much can I make in 10 years if I left $4,000 in it?
2006-10-28 09:05:03 · 12 answers · asked by Anonymous in Business & Finance ➔ Investing
I think you may have forgotten about annual contributions into the Roth.
IF you have a Roth IRA with $4,000 and deposit $4,000 annually for 40 years AND earn a somewhat more reasonable 12.3% then you'd have $3.7 million (lots of stock mutual funds have earned 12.3% over the past 40 years).
Regarding your other question: Earning 10% for 10 years, with no further contributions, you'd turn your $4,000 into about $10,000 in 10 years.
2006-10-29 23:47:26 · answer #1 · answered by derek 4 · 0⤊ 0⤋
Every large bank has a section with investment counselors. I would look into "The Hartford" funds, such as a Variable Annuity. It is Variable because the rates change, mostly upward.
The past 3 years, I earned 28.4% return on my investment. I read the Finance section of Yahoo regularly, and moved the amount into different sectors.i.e., Finance, International funds, small cap, etc.
The International Funds performed well.
2006-10-28 09:40:06 · answer #2 · answered by sandra b 1 · 0⤊ 0⤋
That really depends on the stock market and interest rates. 3.7 sounds very high even at the higest rate of return to earn off of 4K in any kind of account.. talk to a financial advisor, they can answer this and other questions quickly!
2006-10-28 09:14:06 · answer #3 · answered by SKayeMesqTX 2 · 0⤊ 0⤋
(Probably) not true. It could become true but only at a non-probable interest rate.
Formula for compounding interest is:
(1+Interest)^Years * Principal = Result
...lets solve your question (How much can I make in 10 years if I left $4,000 in it?) by plugging in values and assuming 5% interest:
(1+ 0.05) ^ 10 * 4000 =
1.05 ^ 10 * 4000 =
1.63 * 4000= $6520
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2006-10-28 09:22:42 · answer #4 · answered by gene_frequency 7 · 0⤊ 0⤋
4000 to 3.7 million dollars is 925 times, that would mean that you would have to get a return of 18.62%. It seems possible.
At this rate, you would have about 86,500 after 10 years.
2006-10-28 10:40:25 · answer #5 · answered by seshadrinath 2 · 0⤊ 0⤋
right it is one factor to bear in mind with reference to the Roth IRA account. there is by no potential any tax on it the place as there is on your 401k. This will become considerable while pondering your asset blend. income producing investments are taxed on the comprehensive tax fee as would be your 401k. for this reason it is sensible to take a position a minimum of a few of your 401k in income producing sources--bonds, LPs, REITs. The income from each of those is taxed on the comprehensive tax fee besides. Now via fact the Roth IRA is by no potential taxed, it is likewise sensible to place those kinds of sources into the Roth IRA additionally. and additionally fairness investments. What you ignored to show are investments outdoors of those 2 autos. in case you have some, they must be investments which would be taxed on the capital features fee--fairness investments. easily, except you're interior the optimum tax bracket it is sensible to have a piece of your fairness investments outdoors of a 401k. with the help of doing so the comprehensive tax invoice would be decreased, exceedingly while you're an prolonged term investor. in case you have the least hankering to take a position a number of your income gold and silver those genuinely must be interior a Roth IRA. the two are taxed as collectibles in any different case. yet another factor to evaluate in regard to the 401k is that for the period of years yet to come the tax fee could easily be larger, possibly lots larger, than it at the instant is. via fact which you quite have no decision of putting non-mutual fund investments interior a 401k apart from possibly enterprise inventory, it genuinely does make experience to take a position Roth IRA income enterprise shares extremely than mutual money. yet be careful. it is quite tempting for many to take a position with their Roth IRA account exceedingly short term identifying to purchase and advertising which in any different case may be taxed on the comprehensive tax fee. which would be a solid thank you to decrease that fee of the Roth account. Be in basic terms somewhat careful. make investments interior the likes of MCD, WMT, JNJ, BDX, KO, and so on. or possibly ETP with its 8% dividend or PAA with its 7.5% dividend. and don't make investments it in fewer than 5 diverse companies.
2016-10-03 01:38:03 · answer #6 · answered by ? 4 · 0⤊ 0⤋
Not unless you can get over 18% interest. Really in 40 years at say 8% you'd have about 86,000 in ten years you'd have about 8,600
2006-10-28 09:13:30 · answer #7 · answered by Richard 7 · 1⤊ 0⤋
It's a scam!!!
And remember in 40 years u'll get 80K's roughly that 80K is not worth 80K as in today's money. Inflation is there to make things a bit more interesting :D
2006-10-28 16:41:41 · answer #8 · answered by Andrew H 1 · 0⤊ 0⤋
It sounds like you need a financial adviser. If you are interested and in California, email me and I can refer you to my financial adviser. I completely trust her with all my money. She is my wife. =)
2006-10-28 10:33:15 · answer #9 · answered by bravenarr 2 · 0⤊ 0⤋
NO! This is not true. Don't fall victim to scams.
2006-10-28 09:15:05 · answer #10 · answered by Anonymous · 0⤊ 0⤋