Home

IRA

 
Post new topic   Reply to topic    Forum -> Household Management -> Finances


View latest: 24h 48h 72h

amother




OP
 

Post Tue, Jan 24 2023, 10:21 am
Need help from the saavy ones. If I set up a Roth IRA at 40, approximately how much will it be worth at retirement assuming I'm contributing approx 6,000 annually
Back to top

amother




Burntblack
 

Post Tue, Jan 24 2023, 10:24 am
What age do you plan to retire?
Back to top

amother




OP
 

Post Tue, Jan 24 2023, 10:26 am
65 maybe
Back to top

amother




Burntblack
 

Post Tue, Jan 24 2023, 10:32 am
If you contribute 6k a year starting at age 40 and plan to retire at 65, your contributions will be $150,000.
Historically, the 30 year return of the S&P 500 has been roughly 10-12%.
If you estimate a 11% annual return, your estimated retirement savings at age 65 will be $788,066.
$150,000 contributions + 638,066 growth.

(This was calculated using the Dave Ramsey Calculator)
Back to top

amother




OP
 

Post Tue, Jan 24 2023, 10:51 am
what about a whole life insurance that only allows you to pay into it for 10 years (6,000 a year) continues to grow the longer you keep it there
Back to top

ellacoe




 
 
 
 

Post Tue, Jan 24 2023, 7:31 pm
There are tax advantages to the Roth IRA, what are the tax ramifications of the Life Insurance policy?
Back to top

jd1212




 
 
 
 

Post Tue, Jan 24 2023, 8:08 pm
I sell whole life insurance. It’s structured very similarly to Roth IRAs- you contribute post-tax and the growth of dividends are non-taxable because it’s technically an insurance policy. If you withdraw/loan money from the policy correctly, there are no taxes either.
Back to top

jd1212




 
 
 
 

Post Tue, Jan 24 2023, 8:19 pm
amother Burntblack wrote:
If you contribute 6k a year starting at age 40 and plan to retire at 65, your contributions will be $150,000.
Historically, the 30 year return of the S&P 500 has been roughly 10-12%.
If you estimate a 11% annual return, your estimated retirement savings at age 65 will be $788,066.
$150,000 contributions + 638,066 growth.

(This was calculated using the Dave Ramsey Calculator)


Dave Ramsey is truly committing malpractice putting those numbers out as expected returns for investors because he doesn’t take into account sequence of returns (a 20% downturn when you’re 63 and have the most money in your account drastically hurts your portfolio vs. that in year 2 of contributing).

Fidelity released a study showing the average investor experiences a lifetime return of 4.5% post-tax. Similar to whole life policies over their lifetime as well as of now, and have a lot less risk. Though best to have both to diversify, not just one IMO.
Back to top
Page 1 of 1 Recent Topics

View latest: 24h 48h 72h


Post new topic   Reply to topic    Forum -> Household Management -> Finances

Related Topics Replies Last Post
Roth IRA how indicate for 2021, if opened Jan 2022?
by amother
8 Wed, Mar 02 2022, 10:57 pm View last post
403B and Roth IRA question
by amother
2 Tue, Jan 18 2022, 9:29 pm View last post