Friday, October 12, 2007

get rich or die trying

http://money.cnn.com/2007/10/05/pf/retirement/cash_from_401k.moneymag/index.htm

Well a little cliche, buttttt...

So for those that have scoffed at all be it most 401 k wild projections.

Seeing something like this really is a nice change of pace.

The problem with most investments is, they are mostly projections. If they pan out great.

However the Roth IRA is not a bad deal. $15500.00 seems like a lot of money for most people. Think about it if you started a Roth IRA @ say age 20 and saved just $100.00 a month. Well guess what in say just under 13 years you would have met that amount. Even though $15500.00 is the maximum contribution amount a year for a Roth IRA. In this article it is also used as a wow factor. for a 20 year investment : "Put your money in a Roth 401(k) and you'll end up with $72,245 tax-free in 20 years"

However, the numbers don't lie. If you did in fact place $15500.00 in an account and let it sit earning interest amortized @ an 8 % interest rate. You would indeed have $72,245. This money is then tax free when you go to retire and start with drawing.

Now let's go back to the example of the 20 year old. If started @ age 20 and was diligent about adding into the account. By the time they were 33 they definitely would have a leg up on most 33 year old.

Not only does that go far for retirement planning. If credit is handled properly. That money all be it should not be touch. Can be tallied in total net worth when going to apply for a mortgage on a new home or condo.

Sounds pretty good to me.

Now let's look at other tax benefits or shelters for those who might think about assisting your children down the road in their everquest in education.

http://www.collegesavings.org/didYouKnows.aspx

http://www.bankrate.com/gookeyword/news/college_guide_2007/studentloan/saving_for_college_1.asp?caret=1a?pop=nopop&ec_id=GOOG_ag_529_Savings_ky_Broad_k_529_savings

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