Roth IRA Question

synyster

Homegrown Sensei
BGOL Investor
What is the return rate on a ROTH IRA. For example if i put in 2 or 3 g's in at the beginning of the year(2006)....how much would it be worth in 2007 or hell 2020?
 

mc2

Rising Star
Registered
synyster said:
What is the return rate on a ROTH IRA. For example if i put in 2 or 3 g's in at the beginning of the year(2006)....how much would it be worth in 2007 or hell 2020?
It all depends on what you have in that fund. You could also loose money if you dont pic the right investments.
 

BookerTee

Potential Star
Registered
man you have a million and one options for a IRA (or Roth) and each option will have a different rate of return. Generally speaking an IRA over time is expected to generate double digit returns.
 

Heist

Rising Star
Registered
BookerTee said:
man you have a million and one options for a IRA (or Roth) and each option will have a different rate of return. Generally speaking an IRA over time is expected to generate double digit returns.
Not neccessarily so ... double digit returns over time. If you have a dog sh*t stock or mutual fund ... you can make nothing in interest, or even lose the money you're contributing year over year.
 
A

ActivationWizard

Guest
-x to +y is your potential rate of your return. A ROTH IRA is merely a vehicle where contributions are taxed going in and are not taxed going out, provided you do not withrdaw them till 59.5 years of age.

What are you looking to accomplish investment wise?
 

synyster

Homegrown Sensei
BGOL Investor
ActivationWizard said:
What are you looking to accomplish investment wise?
Basically for the long term, I'm just looking to stack my money so i can live confortably when i retire. Starting in 2006 I want to do an IRA and 401K. For the short term I need to find a side business of some sort so i can net and extra $500-$1000 a month.
 

Makeherhappy

Potential Star
Registered
synyster said:
Basically for the long term, I'm just looking to stack my money so i can live confortably when i retire. Starting in 2006 I want to do an IRA and 401K. For the short term I need to find a side business of some sort so i can net and extra $500-$1000 a month.

You can only start a 401k with a job. That side business would be a nice one, let me know if you find something like that. Limits on 401k and IRA differ greatly. My suggestion is you sit down with a professional and do some type of planning.
 

BookerTee

Potential Star
Registered
Heist said:
Not neccessarily so ... double digit returns over time. If you have a dog sh*t stock or mutual fund ... you can make nothing in interest, or even lose the money you're contributing year over year.

True that. A return can vary. I meant double digit in terms of what most people expect to get. Lots of tech heavy mutual funds dropped like it was hot a few years ago.

Like other dude said, check with an advisor and read up on morningstar.com and other non-subjective sites. They even have a roth/401K hybrid plan now. Shit can be a bit complex but as my man GI Joe said "Knowing is half the battle" :yes:
 

Chase Bannon

Star
BGOL Investor
synyster said:
Basically for the long term, I'm just looking to stack my money so i can live confortably when i retire. Starting in 2006 I want to do an IRA and 401K. For the short term I need to find a side business of some sort so i can net and extra $500-$1000 a month.
I would suggest you get a Roth IRA then buy a blue chip stock that pays dividends and let the dividends reinvest themselves back into the stock until you retire. You will be very surprise what your return will look like.
 
A

ActivationWizard

Guest
Roth IRA is non-qualified. 401k is qualified.

Limit for a personal retirement account is $4000 for 2006 if you are under 50. Max out your IRA for 05 till April 15th, over and above whatever your employer matches which is placed in your 401k. Both combined cannot have over 4k. If you have a spouse who does not work, you might be able to do 8k spousal and personal combined.

Roth IRAs are not taxed when the money is being taken out, but are taxed when they are being put in. The reverse is the case with 401ks and Traditional IRAs.

What you put in your IRA is up to you and your investment adviser. What matters is not timing the market but your time in the market. There are funds that have outperfomred the market overall, but have not done that well in the last 1/3/5 years.

A mutual fund is 1001% better than common stock, hence most of the big money is in mutual funds: Reasons being:

1)Diversification
2)Professional Management

To get qualified advice talk to a licensed agent.
 

Heist

Rising Star
Registered
ActivationWizard said:
Roth IRA is non-qualified. 401k is qualified.

Limit for a personal retirement account is $4000 for 2006 if you are under 50. Max out your IRA for 05 till April 15th, over and above whatever your employer matches which is placed in your 401k. Both combined cannot have over 4k. If you have a spouse who does not work, you might be able to do 8k spousal and personal combined.

Roth IRAs are not taxed when the money is being taken out, but are taxed when they are being put in. The reverse is the case with 401ks and Traditional IRAs.

What you put in your IRA is up to you and your investment adviser. What matters is not timing the market but your time in the market. There are funds that have outperfomred the market overall, but have not done that well in the last 1/3/5 years.

A mutual fund is 1001% better than common stock, hence most of the big money is in mutual funds: Reasons being:

1)Diversification
2)Professional Management

To get qualified advice talk to a licensed agent.
A few corrections:
(1) With Roth IRA's the money you put IS NOT taxed, however, you cannot claim contributions as a deduction on your income taxes.

(2) Although better than common stocks and bonds, the big returns are not with Mutual Funds, but Hedgefunds. Hedgefunds can deliver upwards of 30% returns in a year. Yes, they're riskier than Mutuals, but not nearly as risky as betting individual stocks. If you really want to be safe and want a steady return regards of market conditions, buy Munipical Bonds (State - City Issued), Federal T-Bills or Inflation Adjusted Bonds (Federal).
 

BoyJupiter

Star
Registered
ActivationWizard said:
Roth IRA is non-qualified. 401k is qualified.

Limit for a personal retirement account is $4000 for 2006 if you are under 50. Max out your IRA for 05 till April 15th, over and above whatever your employer matches which is placed in your 401k. Both combined cannot have over 4k. If you have a spouse who does not work, you might be able to do 8k spousal and personal combined.

Roth IRAs are not taxed when the money is being taken out, but are taxed when they are being put in. The reverse is the case with 401ks and Traditional IRAs.

What you put in your IRA is up to you and your investment adviser. What matters is not timing the market but your time in the market. There are funds that have outperfomred the market overall, but have not done that well in the last 1/3/5 years.

A mutual fund is 1001% better than common stock, hence most of the big money is in mutual funds: Reasons being:

1)Diversification
2)Professional Management

To get qualified advice talk to a licensed agent.
So how long have you been with Primerica? LOL of course this is probably a wrong assumption but I work with agents all day. This is all that I'm hearing right now. We have so many idiots trying to put $6000-$10000 for current year contributions.
 

Lick

Rising Star
BGOL Investor
BoyJupiter said:
So how long have you been with Primerica? LOL of course this is probably a wrong assumption but I work with agents all day. This is all that I'm hearing right now. We have so many idiots trying to put $6000-$10000 for current year contributions.
LOL!!! PFS... Ain't with it! Back in the day before it was PFS they were doing something to help people... Now... I'll stop at that! "LICK"
 

BigATLslim

Rising Star
BGOL Investor
synyster said:
Basically for the long term, I'm just looking to stack my money so i can live confortably when i retire. Starting in 2006 I want to do an IRA and 401K. For the short term I need to find a side business of some sort so i can net and extra $500-$1000 a month.
Now, I can address this. In the face of popular opinion, 401k Traditional/Roth IRA's or any type of defined contribution plan is the setup of the year. The stock market is all based on past performance and if you don't have a financial windfall or your financial intelligence is not up, it is like gambling.

Building a business, in my opinion is your best bet which is immediately followed by becoming involved in real estate. In these two mediums, you have control. You get to look at past performance, pick funds, wait on them to perform in the retirement plans to only have access at 59 1/2. No earthly idea how the market will look when you retire. Just ask the enron niggas an those who lost it all in the tech boom. Bottom line, somedoby else is managing YOUR money.

I contributed to my 401k like a champ, did my resarch and stopped doing it. I have invested in real estate and am attempting to start businesses. Take it from me, a former Primerica representative straight outta college. I recognized game quick and stopped feeding people that sheep knowledge.

You know what, I just noticed none of the information I gave you may have helped. You want to start a business, read this book by Michael Masterson called Automatic Wealth. If this book does not give you some form of insight, I don't know what will.
 

Lick

Rising Star
BGOL Investor
SlimJones said:
Now, I can address this. In the face of popular opinion, 401k Traditional/Roth IRA's or any type of defined contribution plan is the setup of the year. The stock market is all based on past performance and if you don't have a financial windfall or your financial intelligence is not up, it is like gambling.

Building a business, in my opinion is your best bet which is immediately followed by becoming involved in real estate. In these two mediums, you have control. You get to look at past performance, pick funds, wait on them to perform in the retirement plans to only have access at 59 1/2. No earthly idea how the market will look when you retire. Just ask the enron niggas an those who lost it all in the tech boom. Bottom line, somedoby else is managing YOUR money.

I contributed to my 401k like a champ, did my resarch and stopped doing it. I have invested in real estate and am attempting to start businesses. Take it from me, a former Primerica representative straight outta college. I recognized game quick and stopped feeding people that sheep knowledge.

You know what, I just noticed none of the information I gave you may have helped. You want to start a business, read this book by Michael Masterson called Automatic Wealth. If this book does not give you some form of insight, I don't know what will.
Automatic Wealth: The Secrets of the Millionaire Mind--Including: Acres of Diamonds, As a Man Thinketh, It Works, The Science of Getting Rich, The Way to Wealth, and Think and Grow Rich... They all are good! "LICK"
 

Makeherhappy

Potential Star
Registered
Some of this stuff is wild. Some will suffer greatly.

THE BEST ADVICE: HAVE A FRIEND OR A LOVED ONE REFER YOU TO THEIR FINANCIAL ADVISER.
 

My Mella

Star
Registered
synyster said:
What is the return rate on a ROTH IRA. For example if i put in 2 or 3 g's in at the beginning of the year(2006)....how much would it be worth in 2007 or hell 2020?
Hey Syn,

Since you're in the ATL, do yourself a favor and look up a guy named Keith Phillips on Panola RD off of I-20 in Lithonia. He's a sharp millionaire who will help you if you are serious. He also will not charge you to talk.

-Peace
 

therealjondoe

Rising Star
BGOL Investor
What is the return rate on a ROTH IRA. For example if i put in 2 or 3 g's in at the beginning of the year(2006)....how much would it be worth in 2007 or hell 2020?
So how's your shit looking in 2020?
I was just searching old threads for some IRA info and came across this one and saw 2020 lol
 

Madrox

Vaya Con Dio
BGOL Investor
I can't believe how much of a rookie I sounded like asking this dumb shit :lol:. Needless to say my portfolio is going to have me retiring a wealthy man :cool::money:
THAT'S what's up!

I just started my Roth last May... I hope I can say the same in 15 years :cheers:
 
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