I am 19 and have a Roth and a Simple established. 6% goes to the simple and 3% goes to the Roth. This is all through an advisor. How well off will I be and when can I retire?
2007-01-06 08:46:14 · 4 answers · asked by dukes 2 in Business & Finance ➔ Personal Finance
If you invest the maximum allowed in either account every year until 65 and you earn 10% - the long term average return of the stock market, you will have in excess of $3 million.
2007-01-06 08:50:52 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You will need to invest at least $4000 a year to have anyting worth talking about. But it really depends upon what you want at retirement....
A simple formula : Take any amount, divide it by 2 and then drop a zero.
We will do ONE MILLION for the example :
$1,000,000.oo divided by 2 = $500,000.oo DROP a zero = $50,000.oo.
Can you life off $50,000.oo a year?? If so then you will need to have one million dollars in these IRA's combined
Simple simple!
2007-01-06 19:03:37 · answer #2 · answered by Kitty 6 · 0⤊ 0⤋
kitty, why not just say you live off of 5% of the funds?
1M x 5%=50,000
seems easier to me
but starting at 19 is going to help a whole lot, i started at 30 and i sure wish i would have thought ahead when i was 19
2007-01-06 19:13:09 · answer #3 · answered by swenjj 4 · 0⤊ 0⤋
Much better off than if you didn't invest.
In order to give you an accurate answer, you need to list the funds that you are investing in, the investment firm, how often you are investing in each and what your current balance is.
2007-01-06 16:49:55 · answer #4 · answered by Anonymous · 0⤊ 0⤋