Comments on: Turning $5,000 into $110,000 (Tax Free) – All it takes is time http://mynextbuck.com/turning-5000-into-110000-tax-free-%e2%80%93-all-it-takes-is-time/ Personal Finance for Young Professionals Mon, 06 Feb 2012 19:25:01 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: Where Should You Be Focusing Your Money | My Next Buck http://mynextbuck.com/turning-5000-into-110000-tax-free-%e2%80%93-all-it-takes-is-time/comment-page-1/#comment-577 Where Should You Be Focusing Your Money | My Next Buck Tue, 12 Jan 2010 11:57:23 +0000 http://buildingwealthtogether.com/?p=120#comment-577 [...] things off. 3: Max out your Roth IRA – you can’t beat tax free earnings. Every person in their mid 20s should have a Roth IRA if they qualify. ($5,000 annually) 4: Build an emergency fund – pick a number that will be [...] [...] things off. 3: Max out your Roth IRA – you can’t beat tax free earnings. Every person in their mid 20s should have a Roth IRA if they qualify. ($5,000 annually) 4: Build an emergency fund – pick a number that will be [...]

]]> By: Brian http://mynextbuck.com/turning-5000-into-110000-tax-free-%e2%80%93-all-it-takes-is-time/comment-page-1/#comment-36 Brian Thu, 16 Jul 2009 14:29:14 +0000 http://buildingwealthtogether.com/?p=120#comment-36 @JH – I agree, this does not account for inflation. However we do not know what inflation will be like over the course of the next 40 years, which makes it difficult to account for. We could knock off 3% of each annualized return to cover inflation, however $110K in 2050 is still $110K even if its only worth $75K in today's dollars. Besides, doesn't the sound of $5000 turning into something that is in the six figures just sound better? @JH – I agree, this does not account for inflation. However we do not know what inflation will be like over the course of the next 40 years, which makes it difficult to account for. We could knock off 3% of each annualized return to cover inflation, however $110K in 2050 is still $110K even if its only worth $75K in today’s dollars. Besides, doesn’t the sound of $5000 turning into something that is in the six figures just sound better?

]]> By: JerichoHill http://mynextbuck.com/turning-5000-into-110000-tax-free-%e2%80%93-all-it-takes-is-time/comment-page-1/#comment-34 JerichoHill Thu, 16 Jul 2009 12:17:17 +0000 http://buildingwealthtogether.com/?p=120#comment-34 Hey Brian, One problem with your math is that you are not considering the cost of inflation, which would greatly reduce the real value. It is certainly possible to turn 5K into 110K over 25 years, but inflation adjusted the gain is much less. Hey Brian,

One problem with your math is that you are not considering the cost of inflation, which would greatly reduce the real value.

It is certainly possible to turn 5K into 110K over 25 years, but inflation adjusted the gain is much less.

]]> By: Brian http://mynextbuck.com/turning-5000-into-110000-tax-free-%e2%80%93-all-it-takes-is-time/comment-page-1/#comment-35 Brian Wed, 08 Jul 2009 20:02:19 +0000 http://buildingwealthtogether.com/?p=120#comment-35 @ Brook – Thats great to hear that you started up again. It sounds like you missed out on the bad stretch of the market coincidentally, so you may be well ahead of all of those that dollar-cost-averaged their way through the recession. @ Brook – Thats great to hear that you started up again. It sounds like you missed out on the bad stretch of the market coincidentally, so you may be well ahead of all of those that dollar-cost-averaged their way through the recession.

]]> By: Brook http://mynextbuck.com/turning-5000-into-110000-tax-free-%e2%80%93-all-it-takes-is-time/comment-page-1/#comment-33 Brook Tue, 07 Jul 2009 15:33:31 +0000 http://buildingwealthtogether.com/?p=120#comment-33 I stopped contributing to my Roth IRA two years ago when I left my job to go back to school full time. I've since graduated, and I've been employed for several months. I was putting off contributing to my Roth, really out of procrastination and laziness more than anything else. Anyway, thought you'd like to know that your good influence propelled me to reestablish my contributions so I'm on target to max out by the end of the year. Thank you &ndash and keep writing! I stopped contributing to my Roth IRA two years ago when I left my job to go back to school full time. I’ve since graduated, and I’ve been employed for several months. I was putting off contributing to my Roth, really out of procrastination and laziness more than anything else. Anyway, thought you’d like to know that your good influence propelled me to reestablish my contributions so I’m on target to max out by the end of the year. Thank you &ndash and keep writing!

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