How Much Your Child Would Have for Retirement If They Contribute To a Roth IRA Immediately

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Meanwhile, theyll get to enjoy tax-free withdrawals from the account in retirement.

This is due to the powerful effects of compound interest over long periods of time.

By the time they reach age 65, their Roth IRA could be worth $365,619.

At that level of contribution, retirement earnings can absolutely explode by age 65.

At a10% annual earnings rate, that balance will more than double, to about $641,000.

Nothing moves in a straight line in the investment world.

Youll end up with an account balance of $1,464.10.

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