I am 19. I am going to put my money in a ROTH IRA for 6 years compounding yearly at 1.4%, 5 times in a row, which means 30 years. I also plan on contributing $500 monthly to it.
So, when I am 49, I will be at $222,559.38
What could go wrong?
That's dumb as shit. My checking account has a 2.5% APR so long as I make at least debit card purchases a month.
Just put it in a Vanguard Target Retirement 2045 (or 2050/2055) Mutual Fund.
>>988330
You can't put 500 a month in it. You can only put ~450 to start with.
>>988345
You should be saving that money instead of spending it for a higher APR, silly.
What's the logic? What's a good rate if you don't get to save as much money as you could have?
>>988349
Oh, well then I'll put $500 in my savings/per month, and after my 72 month period runs out on the IRA and I receive the money, I'll open another ROTH IRA with the money+savings... four more times.
>>988350
I want to reply but your post left me dumbfounded. Do you think before you post or are you just retarded?
>>988397
You're right, I'm sorry.
1.4%? Sounds like some kind of shitty credit union IRA or savings IRA.
Open a Roth with a big brokerage like Vanguard or E*trade (has a $500 minimum deposit if you don't have the $1.5k for Vanguard.) Invest in whatever S&P 500 fund they offer with no commissions. You'll get around 3% a year compounding from reinvested dividends alone.
>>988330
>what can go wrong
The balance will be 220k when it needs to be 1.2mil
>>988883
>invest in S&P 500 funds
Yeah let's get that 3% at the cost of 50% drawdowns
>>988963
Please, by the time he's 49 in 30 years, average lifespan will be extended conservatively 3-5 years, longer. Those last years will be costly. He'll need at least 1.8M
>>989607
Nobody with half a brain is selling a fund holding that's being locked up in a retirement account for 30 years because of a short-term market downturn.
