Hi everyone,
I’m 20 years of age and I’m thinking of investing into a Roth IRA. However I just came across that I can only take out once I hit 59.5 years old.
Is it really worth it to start now and wait 2x your whole life to see this money? I can’t fathom how long this is.
Thank you.
Posted by Bajeetthemeat
4 Comments
$7k now becomes over $200k, tax-free, if you can sit on it for 39 years at historical stock-market appreciation rates (and if the government doesn’t change the rules in the meantime).
You are currently paying 6.2% of every paycheck, with an equal match from your employer(s), into a non-voluntary plan where you won’t see a cent of return until you are in your 60s (if ever). Fathom that!
Do it. If I, at 20, had the knowledge, or money, to have been consistently investing in a Roth IRA, I would have done it. And even if you don’t contribute every year, it’s still a great nest egg to have when you are older
Yes. You have to have some faith. I started in my mid-20s. I retired at 60 with several million. Now I use $100 bills to light my Cuban cigars. Not really, but I certainly can afford it.
That’s the whole point, a lifetime of tax free growth. Your money could double 5 times (or more) during your career and you only pay taxes income taxes on the principle