Thursday, May 01, 2008

I always read this - but didn't do it!


Maybe you will

Case 1:• $2,000 invested annually in years 1 to 5•

No contributions after year 5•

Assumed rate of return of 10%•

Interest compounded annually.•

All interest is reinvested.•

Total invested $10,000

Case 2:• No money invested in years 1 to 10•

$2,000 invested annually in years 11 to 40•

Assumed rate of return of 10%•

Interest compounded annually.•

All interest is reinvested.•

Total invested $60,000


End result after 40 years

Case one..... Case 2

$343,136.... $$ 328,928


Of course getting 10% right now is not easy-
but maybe it is time to help the kids figure out their IRAs

1 comment:

LadiesoftheHouse said...

Hi Janette,

Thanks for stopping by my blog earlier! We are enjoying the sunroom already and there is hardly even anything in it yet.

Is your son a pilot? One of your posts said your "fly boy." I ask because my 17 year old daughter wants so bad to become a pilot. It has been her lifelong dream.

Kris