This weekend I will be posting several things on cooking and finance--what a great combination, right?
But today, I wanted to encourage everyone reading this blog whether parent or child, high school or college student, or graduate and employed to investigate opening one of the best savings tools available at a young age: The Roth IRA!
Don't lose out on one of your most valuable assets when it comes to making money: TIME.
If you qualify for a Roth IRA (which you most likely do if you are young and employed) and you contribute the maximum allowed dollar amount to your Roth IRA between 20 to 30 years of age, you will likely have more money by the time you hit 65 years of age, than those contributing thousands upon thousands of dollars to their retirement funds later in life--even if they are contributing twice as much as you did when you were 20.
If you can do this one thing for your future for as long as you qualify for a ROTH IRA, assuming an expected and historical average 8% compounding return on your money--the numbers are simply staggering in terms of what awaits you down the road. Everything you contribute, up to a limit of $5000 per year, can grow tax-free until you start withdrawing later in life. Run the calculations yourself at www.bankrate.com with one of their calculators.
Some institutions and banks will require a minimum deposit to open the account. Other institutions may require a lower opening deposit, but require that you contribute on a regular, automated basis each month until you reach that minimum deposit.
This article from Kiplinger does a great job explaining the perks and qualifications of having a ROTH IRA from now onward. See for yourself:
Want more info?
See some of the resources below: