Wikiam

I was chatting with Ivy today who used to work at Ameriprise. Anyway she told me to start saving toward my retirement by opening a Roth IRA account.

She said, if I put in 4,000 dollars every year, then when I turn 42, I should be a millionaire.

Is this too good to be true? If I only invest 4,000 dollars for the next 20 years, then they will only add up to 80,000 dollars. I mean how can this 80,000 going to help me become a millionaire? I don’t have the answer to this. But according to Ivy, this is how it works. Maybe it’s possible after compounding earning on top of earning. Who knows. She told me that she got this number from a financial calculator that Ameriprise uses.

So there you have it. Start putting away 4,000 dollars into your Roth IRA account annually then you will be a millionaire in about 20 years.