How much should i be investing each month and at ... - Roth IRA News

You should Google ?retirement calculator? ? bank of america has one.

You typically cannot put money monthly into high-earning arenas unless you do so through a 401(k).

Can you have achieved a $3 million dollar savings in 40 years? Of course you can.

Let?s be dumb and use arithmetic. $3,000,000 / 40 / 12 = $6,250 / mo. That?d be true if you made no interest on your money, and you had no money saved already.

Before you start thinking about interest rates, you should think about taxes. Unless you save money in a tax-sheltered manner, your earnings will be taxed. So, a large portion of your money needs to be going into a tax-sheltered vehicle, like a Traditional IRA or 401(k). Typically, people make more money when they are 40 than when they are 65 (retired). So, if you go the tax-sheltered route, you save now on taxes and pay them back (at a smaller rate) later on.

Here?s my advice? if you have no savings as of yet, and you have no access to a good 401(k) plan, then go to the bank and open up a Traditional IRA. Open up a savings account inside of that Traditional IRA. You will be able to make monthly payments into that savings account. When you have enough money, take out the longest-term CD you can get. Keep repeating this until you have enough saved up to go see a person about mutual funds (or other investment vehicles that can help you beat the rate of inflation).

You MUST make sure and not tie up too much of your money in things that have penalties for early withdrawal. Traditional IRAs? CDs? stocks, bonds, variable annuities? 401(k)s? all of these things have penalties for early withdrawal. So always make sure that the amount you are investing each month does not eat away at your ability to pay for unforeseen negative events that may emerge.

The first step toward saving $3 mill is to make sure that you can pay your bills for the next year without even having to have a job. Get to that point first. Many people want to go for the big money first, and end up neglecting the basics.

If you have $1,000.. you don?t really want to go buy Google stock because it?s supposed to go up 100% over the next year. You need to keep that in your checking or savings account, and pass up the easy money. If you end up needing that money, you will lose big when you sell your share or two of stock the $1,000 bought you.

Think of how much money you make monthly. Consider how much money you have left over. Take the total amount you pay in bills monthly (averaged over the last year or two), and consider that as your cushion. You need to first save up enough money to have that cushion (enough money to survive on for a year in case something bad happens). We might call this self-insurance.

Once you have that, your ability to invest becomes such a better idea, and the chances of you hitting your target by 65 (or earlier) becomes three million times more probable.

Source: http://rothira.solve-up.com/roth-ira/how-much-should-i-be-investing-each-month-and-at-what-rate-to-achieve-to-make-3-mill-by-age-65/

kennedy demi moore roy oswalt kevin martin 2012 senior bowl chuck series finale welcome back kotter