How To Turn $5,000 A Year Into a $33 Million Legacy
With a headline like that I bet you’re thinking this is one of those wild & crazy get rich schemes. However, it’s really just a hypothetical illustration of the great benefits of three factors that can work in your favor in building a legacy: compounding interest Roth IRA tax laws (including IRA stretch provisions) time What follows is an example of how you can make those three factors work together to create this $33 million legacy. How It All Started… Once upon a time, there was this guy named Joe. Joe is 20 years old, working part-time making decent money, finishing up college, just generally living large (by a 20-year-old’s definition). On the advice of his father (yes, some 20-year-olds do listen to their fathers!), he opened up a Roth IRA, funding it with $5,000. The account was invested in a fixed 5% yield instrument of some sort (not important […]
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