No. of Recommendations: 0
chuckwrd, you asked:

<< I have used several projection calculator's to try to determine what my income would be at age 62 from my Roth IRA. What is a good estimated rate of return to use for this section on the calcualtor??? I would think it would be 10%??? Is this low? I am 29 and have $4000.00 dollars in it now and plan on putting in $2000.00 a year until probably age 60?? >>

Yes, when doing your planning/projecting, using a 10% rate of return for equity investments is a good figure for over such a long period of time. It is not "low". Hopefully, you'll be able to do better than this . . .and better than average. But for PLANNING purposes, you don't want to get carried away with assumptions that don't have any historical basis.

That's a VERY good idea to put this amount into a Roth IRA every year. But even though you're doing the smart thing by starting early and taking advantage of what compounding can do over time, this amount invested will not be enough alone. This is because VERY important that you have to take into account inflation and what inflation does to one's purchasing power over time.
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement