The Money Mustache Community

Learning, Sharing, and Teaching => Investor Alley => Topic started by: newton on January 10, 2016, 06:04:37 PM

Title: Help Me Understand
Post by: newton on January 10, 2016, 06:04:37 PM
I started an IRA at age 19 (1990) with $600.  Each year I have tried to contribute.  I rolled it into a Roth in 1998.  My guess (I know I should know) is that I have contributed on average maybe $3K each year (I've maxed the last several years at $5K and $5500.  That would mean I have contributed about $75K.  It is now worth about $100K.

Does that sound right?  What happened to the rule of 72??
Title: Re: Help Me Understand
Post by: nobodyspecial on January 10, 2016, 06:11:38 PM
What fees are you paying ?
2.5% can take a big chunk out of an average market gain
Title: Re: Help Me Understand
Post by: Heckler on January 10, 2016, 06:16:26 PM
What was your rate of return?

http://www.investopedia.com/ask/answers/04/040104.asp

Remember, only the first $600 has been invested since 1990.  It surely has doubled by now, but the $5500 you put in last year hasn't had time to brew.
Title: Re: Help Me Understand
Post by: Heckler on January 10, 2016, 06:18:54 PM
What fees are you paying ?
2.5% can take a big chunk out of an average market gain

Indeed - from that link, a 3% ROR takes 10 years longer to double than a 5%!
Title: Re: Help Me Understand
Post by: GrowingTheGreen on January 10, 2016, 07:06:01 PM
What was it invested in?  This is the only thing that will help us figure it out.  If it was a single company that performed poorly or perhaps a bond fund, you're not going to see large capital gains that could explain things.
Title: Re: Help Me Understand
Post by: newton on January 10, 2016, 07:26:58 PM
Thanks.  It was invested with Thrivent up until last year when I switched to Vanguard (due to the fees).  I have always invested in aggressive growth funds.