Author Topic: How Much can you make in Roth IRA  (Read 4594 times)

Chris04626

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How Much can you make in Roth IRA
« on: February 13, 2014, 03:08:58 PM »
Say i am able to contribute 3 k a year and put it all in VTI     What would we make in a year off that? Estimates of course?

foobar

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Re: How Much can you make in Roth IRA
« Reply #1 on: February 13, 2014, 03:38:05 PM »
About 6-10%/yr would all be decent guesses for the next 20 years. Personally I assume 7 in my planning and hope to be pleasantly surprised.


Say i am able to contribute 3 k a year and put it all in VTI     What would we make in a year off that? Estimates of course?

Frankies Girl

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Re: How Much can you make in Roth IRA
« Reply #2 on: February 13, 2014, 03:45:35 PM »
You should be able to go look at the performance page on their website and see how it has done over the years, but you can't get estimates for future performance since no one is really going to know how the market performs unless they're psychic. "Past performance is not a guarantee of future results"

But most schools of thought say figure on an average of 7% over the lifetime of your investment.

https://personal.vanguard.com/us/funds/snapshot?FundId=0970&FundIntExt=INT#tab=1

Chris04626

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Re: How Much can you make in Roth IRA
« Reply #3 on: February 13, 2014, 04:12:57 PM »
thanks for your input.

wtjbatman

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Re: How Much can you make in Roth IRA
« Reply #4 on: February 15, 2014, 02:30:24 AM »
I encourage you to make every effort to fill the tax advantaged space offered each year (for that Roth, $5500 depending on your age and income). Once April 15th passes you forever "lose" that space, and along with it the preferential tax treatment that money would have received.

Chris04626

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Re: How Much can you make in Roth IRA
« Reply #5 on: February 15, 2014, 03:15:48 PM »
I am definelty going to try to get as much as i possibly can.  Right now i have put in 200 and purchased 2 shares of VTI

Chris04626

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Re: How Much can you make in Roth IRA
« Reply #6 on: February 16, 2014, 10:22:42 AM »
What are the thoughts of investing in a single stock as well. Like Coca Cola

matchewed

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Re: How Much can you make in Roth IRA
« Reply #7 on: February 16, 2014, 11:14:30 AM »
Know what you're getting into. Investing in single stocks has the risk of putting eggs in single baskets. However unlikely it is that Coca Cola will go under you're still at a greater risk of losing money when investing in a single stock than if you were to stick with index funds or ETF's representing broad swaths of the market.

Give this a read - http://jlcollinsnh.com/stock-series/

c12mintz

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Re: How Much can you make in Roth IRA
« Reply #8 on: February 16, 2014, 01:35:49 PM »
Investing in single stocks can be fun and rewarding and you may beat the market over the long-term, but you need to be careful. As others have said/implied, its dangerous to put too many eggs in one basket.

If you are new to this type of stuff, but you want to dabble in 'direct' investment, I'd say put 80% into some sort of index fund split and then the last 20% in 1-3 stocks that you like.

For my wife's IRA, I have her in 3 stocks:

MCD, DIS, XOM -- helps us both sleep better at night to have money in companies like this. Of course we both also have lots of money in index funds.

We own about 25 other direct stocks. I personally enjoy investing, and I get a big kick out of being an owner of a more specific company versus just owning the index. Some people are bored to death or just scared of picking stocks.

To each their own. Bottom line is don't panic and hold course with your original plan.

As to 'how much can I make' I think the 7% posted above over a long-term (10 year) horizon is roughly right. Last year the S&P 500 returned 30% though, so it depends. Even with 7%, that almost doubles your $3k in 10 years.

Undecided

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Re: How Much can you make in Roth IRA
« Reply #9 on: February 16, 2014, 03:33:55 PM »
Depending on who the "you" is, $95 million.

Chris04626

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Re: How Much can you make in Roth IRA
« Reply #10 on: February 16, 2014, 04:27:59 PM »
right i would think it would be interested to follow a single stock or two as well as the VTI i am currently investing in. I wouldnt drop lots into it single stocks of course maybe a couple shares.

Should i do that within my Roth or open up a different account for that? Thoughts?

Chris04626

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Re: How Much can you make in Roth IRA
« Reply #11 on: February 16, 2014, 04:32:32 PM »
Investing in single stocks can be fun and rewarding and you may beat the market over the long-term, but you need to be careful. As others have said/implied, its dangerous to put too many eggs in one basket.

If you are new to this type of stuff, but you want to dabble in 'direct' investment, I'd say put 80% into some sort of index fund split and then the last 20% in 1-3 stocks that you like.

For my wife's IRA, I have her in 3 stocks:

MCD, DIS, XOM -- helps us both sleep better at night to have money in companies like this. Of course we both also have lots of money in index funds.

We own about 25 other direct stocks. I personally enjoy investing, and I get a big kick out of being an owner of a more specific company versus just owning the index. Some people are bored to death or just scared of picking stocks.

To each their own. Bottom line is don't panic and hold course with your original plan.

As to 'how much can I make' I think the 7% posted above over a long-term (10 year) horizon is roughly right. Last year the S&P 500 returned 30% though, so it depends. Even with 7%, that almost doubles your $3k in 10 years.

I was actually looking at the Mcdonalds stock As well as Exon.  How have they done for you? Do you have many shares?

wtjbatman

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Re: How Much can you make in Roth IRA
« Reply #12 on: February 16, 2014, 08:25:32 PM »
If you are interested in individual stocks, I highly recommend Seeking Alpha. There are other great resources out there as well, but SA is a site I visit regularly and read tons of articles. Always do your own research and due diligence, but reading that site will definitely help you with individual stock picks.