Friends, Im about to dish out my top investment idea to share with you all. I cannot reiterate the importance of opening a Roth IRA ASAP. What you have right now along with being at an amazing age where its all about fun is TIME. We have TIME. You still have time to max out for last year as the tax deadline is April 18th.You dont need to be an investor or know anything about trading at all to start. This is the easiest way to hitting a million by retirement. Heres some frame of reference. If you are 25 today, start with $3k, max out the annual contribution to the IRA, which is around $5k, which also will lower your tax liability for that year, Lets say you want to retire at 65. If we use an expected rate of return at say 7%, which is really modest, our total contributions at the end will me around $200k, and the IRA balance would have around $1.11M. When you set up a Roth IRA account you must choose a specific investment for that Roth. It can be any combination of stocks, or funds. My advice is to keep it simple and go for a no load index fund. With an index fund you get a broad investment in hundreds, if not thousands, of stocks. Thats a great one-stop way to get stock diversification. Simply having a 401k and all is absolutely not going to be enough when youre 65. Spend some time and look into this if you have no idea what Im talking about. If you already have one and know the fundamentals of the time value of money, then becoming a millionaire is not a dream, its simply a function of time; which we have a lot of right now. But if you dont, I use Vanguard as I feel after vigorous research that they are the diamond standard when it comes to retirement investments. Feel free to ask me as well if you dont know what to goggle or where to start. I want all of you to be millionaires!
Posted on: Wed, 09 Apr 2014 17:38:49 +0000