Understanding the Roth IRA: Your Ticket to Tax-Free Wealth Accumulation
What if I told you that you could get a million dollars with investing only $100 per month.
Lets face it, money makes the world go round and everyone is always chasing more of it. In our
day and age there is a saying, the rich get richer and the poor get poorer. But what if I told you
that there was a little hack or cheat code that could get you your million dollars. With almost no
effort on your end? Have a peaked your interest yet?
The Power of Consistent Investing: How $100 a Month Can Grow Into Millions
Let me introduce you to the Roth IRA. This is an investment account that will not only let you
retire a millionaire, but you also don’t have to give a penny of that money to old uncle Sam. Yes,
you read that right, you get to skip out on paying taxes legally. The only requirement is that
you have some kind of earned income (meaning you have a job and file for taxes), as well as
making under $140,000 if single and under $208,000 if married.
I’ll even let you in on some of the stocks that I have been investing in later on.
Choosing the Right Investments: Index Funds, ETFs, and Diversification Strategies
All you must do to get started is open an account with any of the big brokerages like Fidelity, or
Charles Schwab, and get started with investing. With an account with Charles Schwab you can
invest with some of the major companies for a little as $5 with their stock slices option and that
exactly what I’m doing to invest in some of my accounts! No, I’m not sponsored by Charles
Schwab, but if they’re watching I’ll be waiting on that email!
So, you have an account but how does this all work? Just because you open an account doesn’t
mean you’re automatically on your way to being rich. Now, you need to fund your account with
as much money as you like. Up to a maximum of $7,000 in 2024 if you’re under 50 and up to
$8,000 per year if you are over 50 years old. What I would recommend is setting up a monthly
deposit into this account just to automate your investing so you don’t even need to think about
it.
Maximizing Returns: Leveraging Compound Interest for Long-Term Wealth Building
The next important step is that we have to put all that money to work, its not going to make
you a million just sitting there! Secondly, You’ll need to invest it into some kind of stock or mutual fund. The
easiest way to invest here would be to just buy an index fund tracking the S&P500 like VOO,
SPY, or SPLG if you don’t have too much to invest with as it only around $55 per share.
Now that were invested here is where all the magic happens. I need to introduce you to our
“hack” called compounding interest. So, the stock market historically on average has grown
around 10% per year some years more some years less. Lets see what happens if we start
investing $200 per month at age 25 and retire at 65. Using the 10% historical growth rate we
end up with just over one million dollars! Now imagine if you started earlier at 18 or invest the
full $7,000 per year instead of $2,400 per year that we chose. So, Don’t wait the earlier you start
the better it is!
Now, as promised I’ll share what investments I have in my Roth IRA. My main investment is in an
ETF called VTI. Which is basically the entire stock market combined so I don’t have to worry
about investing into single stocks. VXUS which is an international ETF for overseas investments,
VNQ which is a real estate ETF. Yes, you can invest in real estate with stocks, and SCHD which is
a growth dividend ETF.
Introducing Block Patterns
Understanding the Roth IRA: Your Ticket to Tax-Free Wealth Accumulation
What if I told you that you could get a million dollars with investing only $100 per month.
Lets face it, money makes the world go round and everyone is always chasing more of it. In our
day and age there is a saying, the rich get richer and the poor get poorer. But what if I told you
that there was a little hack or cheat code that could get you your million dollars. With almost no
effort on your end? Have a peaked your interest yet?
The Power of Consistent Investing: How $100 a Month Can Grow Into Millions
Let me introduce you to the Roth IRA. This is an investment account that will not only let you
retire a millionaire, but you also don’t have to give a penny of that money to old uncle Sam. Yes,
you read that right, you get to skip out on paying taxes legally. The only requirement is that
you have some kind of earned income (meaning you have a job and file for taxes), as well as
making under $140,000 if single and under $208,000 if married.
I’ll even let you in on some of the stocks that I have been investing in later on.
Choosing the Right Investments: Index Funds, ETFs, and Diversification Strategies
All you must do to get started is open an account with any of the big brokerages like Fidelity, or
Charles Schwab, and get started with investing. With an account with Charles Schwab you can
invest with some of the major companies for a little as $5 with their stock slices option and that
exactly what I’m doing to invest in some of my accounts! No, I’m not sponsored by Charles
Schwab, but if they’re watching I’ll be waiting on that email!
So, you have an account but how does this all work? Just because you open an account doesn’t
mean you’re automatically on your way to being rich. Now, you need to fund your account with
as much money as you like. Up to a maximum of $7,000 in 2024 if you’re under 50 and up to
$8,000 per year if you are over 50 years old. What I would recommend is setting up a monthly
deposit into this account just to automate your investing so you don’t even need to think about
it.
Maximizing Returns: Leveraging Compound Interest for Long-Term Wealth Building
The next important step is that we have to put all that money to work, its not going to make
you a million just sitting there! Secondly, You’ll need to invest it into some kind of stock or mutual fund. The
easiest way to invest here would be to just buy an index fund tracking the S&P500 like VOO,
SPY, or SPLG if you don’t have too much to invest with as it only around $55 per share.
Now that were invested here is where all the magic happens. I need to introduce you to our
“hack” called compounding interest. So, the stock market historically on average has grown
around 10% per year some years more some years less. Lets see what happens if we start
investing $200 per month at age 25 and retire at 65. Using the 10% historical growth rate we
end up with just over one million dollars! Now imagine if you started earlier at 18 or invest the
full $7,000 per year instead of $2,400 per year that we chose. So, Don’t wait the earlier you start
the better it is!
Now, as promised I’ll share what investments I have in my Roth IRA. My main investment is in an
ETF called VTI. Which is basically the entire stock market combined so I don’t have to worry
about investing into single stocks. VXUS which is an international ETF for overseas investments,
VNQ which is a real estate ETF. Yes, you can invest in real estate with stocks, and SCHD which is
a growth dividend ETF.
