How
Can You Benefit With An IRA?
Because IRAs are Individual Retirement Accounts, the way they
help you save for retirement depends on your "individual"
employment and financial situation. No matter how much you make or
what kind of pension plan you have at work, every wage earner under
70-1/2 can contribute to an IRA.
And the interest earned plus any tax-deductible contributions you
are eligible to make are completely tax deferred until you begin
withdrawing money from your IRA at retirement (anytime between ages
59-1/2 and 70-1/2). The IRA Growth Chart below gives you an example
of the substanatial earnings possible with an IRA investment.
IRA
Growth Chart
|
Value
of
Your IRA
After |
If
You Contribute
$ 500 /Year
($ 9.62 /Week |
If
You Contribute
$ 1,000 /Year
($ 19.23 /Week |
If
You Contribute
$ 2,000 /Year
($ 38.46 /Week |
| 1
Year |
$
535 |
$
1,070 |
$
2,140 |
| 5
Years |
$
3,077 |
$
6,153 |
$
12,307 |
| 10
Years |
$
7,392 |
$
14,784 |
$
29,567 |
| 20
Years |
$
21,933 |
$
43,856 |
$
87,730 |
| 30
Years |
$
50,537 |
$
101,073 |
$
202,146 |
| 40
Years |
$
106,805 |
$
213,609 |
$
427,219 |
The above chart assumes an interest rate of 7% compounded
annually.
Interest rates on IRAs may fluctuate to some extent over the life of
the
account. Substantial penalties for early withdrawals.
|
