|
|
|||
| Albert Einstein, when asked which was the most significant discovery of the 21st century, gave this somewhat surprising reply: "The principle of compound interest." Compound interest is what makes IRAs so appealing to investors wishing to turn a small investment into a large nest egg over time. For instance, an IRA contribution of just $2,000 per year from age 14 to age 18 (total investment: $10,000) can snowball into a retirement account worth well over $1 million by age 65, as interest is continually compounded with the principle.* The key to IRA planning is to begin making contributions at an early age, giving the principal and interest more years to compound tax-free into a million dollars or more. To see examples of how this can be accomplished, click the "Example A" button. *Assumes a 10%-per-annum return from income and growth. |
Example A: Who Wants To Be A Millionaire Example B: Who Wants To Be A Millionaire Summary |
|||
|
|