How should I invest among 403b and Roth IRA?
2007-02-24 17:17:37 · 6 answers · asked by anonymous 1 in Business & Finance ➔ Investing
Well, you're still relatively young... and you will continue to add to that amount yearly...but your key is going to be in your "investments". Look at the funds available in your 403...about 60% of your money should be in something " conservative" or "safe".....but you're going to have to study the other options for funds that are more " aggressive"... small-cap?,emerging mkts? ....look at the " performance" numbers in some of the funds...put a little into a couple that have been returning in the high teens or better.
Your IRA's should not be with a bank...roll into E-trade or Fidelity..
put your money into some international or global funds....but you have to watch them...not constantly but every six weeks...or so...it's not hard to do for awhile....and once you have some respectable profit ....you move a little more to " safety"....you'll see stuff add up and that million won't be quite so far away!
Good luck...a little reading some weekend...and a little paper shuffling can change your future..please don't think it's a big effort it's nothing...just putting your money to work for you..You worked hard for it, didn't you?
For a little fun go to http://www.finishrich.com
Then go to the "latte calculator" ..play with some numbers... see the difference between 5 or 6 percent and 17 or 19 !!
2007-02-24 18:01:59 · answer #1 · answered by jebediabartlett 6 · 0⤊ 0⤋
Don't panic! If you work for the next twenty years you will have a social security check every month at 67 (or 62 if you can accept a lower amount) so there is no reason why you have to reach a magical number like $1,000,000 in a retirement account - you will not be destitute if you fall short of that goal.. Secondly, unless you rent for twenty years, you should buy a home and, after twenty years, I would not be surprised if you didn't have at least $500,000 in equity by then. Look at house prices twenty years ago - would you have believed then what houses sell for today?
Invest what you can in your 403b and then fund a Roth IRA with whatever is left.
Finally - quit worrying and enjoy the twenty years!
2007-02-24 18:41:27 · answer #2 · answered by rarguile 6 · 0⤊ 0⤋
You either have to increase your rate of return or increase the money you are putting in to your retirement accounts to reach $1 million in 20 years.
Both a 403b and a Roth IRA are good ideas. If your goal is to get a million in the bank, without regard to taxes, a 403b will get you to a million quicker. This is because a 403b doesn't have taxes taken out yet, so it will show a larger base amount - it will include unpaid taxes.
2007-02-25 05:47:50 · answer #3 · answered by Quixotic 3 · 0⤊ 0⤋
With $30,000 saved and 20 years until retirement, you would have to save $1,100 per month and get a 10% return annually to reach $1,000,000.
Go to http://www.dinkytown.com and play with the savings calculators and the retirement calculators. There is also a 403b calculator and a Roth IRA calculator.
Don't let those numbers get you down. The key to an investment plan is being diciplined to live below your means, and to save and invest every month or whenever you have extra money. I would recommend that you sit down with an Investment Advisor to help you with your investment plan.
God luck!!
2007-02-24 17:57:22 · answer #4 · answered by Steve 3 · 3⤊ 0⤋
Win a lotto or invest another $700K over the next 20 years.
At todays interest rate your $39K will only be worth $65K so you have a long way to go.
2007-02-24 17:24:37 · answer #5 · answered by Johnny 5 · 0⤊ 0⤋
That's easy.
Just save $48,500.00 every year with an interest rate higher than inflation.
2007-02-25 05:50:57 · answer #6 · answered by Anonymous · 0⤊ 2⤋