Roth IRA Calculator
WANT TO BECOME A MILLIONAIRE SOMEDAY 💲📈? Two major ways to build wealth for your future and retirement are opening investment accounts such as a ROTH IRA or Brokerage Account.
Unlike other types of accounts, your Roth IRA balance GROWS TAX-FREE and you can start at any age.
Let's see how you can much your savings can grow in a Roth IRA.
What is your age and income?
You can open a Roth IRA at any age as long as you make money from a job or self-employment (examples: Baby-Sitting, running your own business). If you are below 18, you need your parent or guardian's assistance though!
Contributing To and Withdrawing From Your Roth IRA
If you are under the age of 50, you can contribute up to about $6,000 per year and can add money anytime.
However if you withdraw money early (before the age of 59.5), you may have to pay some taxes on your earnings. Whether or not you have to pay depends on what you use the money for. Set this money aside to grow more wealth in the long-run!
Your Roth IRA Grows Tax-Free
In addition to growing tax-free, money in a Roth IRA earns interest and grows quickly over time by COMPOUNDING 📈, especially when you start early.
How you invest your money (examples: stocks of companies, bonds, mutual funds, ETFs) and your risk tolerance impacts how much your money grows.
What is your risk tolerance?
The RISK/RETURN TRADE-OFF is that the more aggressive risk you take on, the greater the reward and your Rate of Return (RoR) if the investment makes money. On the other hand, if you only take a small risk, you will get a smaller reward. Your RISK TOLERANCE is a personal choice!
For example, if you invest in Tesla stock 🚗, you may see the value of your account take dips at times. This is okay, especially if you do not need the money in the near future and want to see it grow more in the long haul.
Compounding Interest... 💲💲💲
A Roth IRA is one way to build wealth for your future. Now, let's see how its balance grows tax-free over time!