Start Early...End Rich
As I mentioned in a previous post about Investment Gifts, I have a bunch of younger brothers and sisters that I would like to get interested in their finances as early as possible. So, a post by FMF over at Free Money Finance really caught my eye today. It was entitled Start on Your First $1 Million at Age 16 and I really need to get this information drilled into my siblings heads.
These numbers are somewhat staggering and it really makes me wish that I had started investing earlier (why didn't anyone tell me about this when I was 14 and working at McDonalds).
Basically, the original article from MSN Money states that if a 16 year old puts $2000 a year into a Roth IRA for just 4 years they will have the following (assuming 10.7% returns...which I think is a little optimistic, but still...):
These numbers are somewhat staggering and it really makes me wish that I had started investing earlier (why didn't anyone tell me about this when I was 14 and working at McDonalds).
Basically, the original article from MSN Money states that if a 16 year old puts $2000 a year into a Roth IRA for just 4 years they will have the following (assuming 10.7% returns...which I think is a little optimistic, but still...):
- $9,378 when you are 20
- $25,917 by the time you are 30
- $71,625 by the time you are 40
- $197,943 by the time you are 50
- $547,037 by the time you are 60
- And $1,114,423 by the time you are 67
0 Comments:
Post a Comment
<< Home