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Lets assume for this "exercise" that the Foolish Four strategy returns 20% annually. Also that the Rule-Maker port will follow similar returns as it has in the past, same for indexes, etc. Over the long term (25-40years max), which would make more money?

Option A)
Roth IRA account, maxed out each year, following the F4 strategy in the Dow until 59.5yrs, which is 40 years exactly (I'm 20 yrs old). Also a balanced portfolio with annual contributions increasing as I graduate, but at least always matching the $2000 in the IRA. Split up as: 25% SPY&QQQ, 50% Rule Maker-style, and 25% Rule Breakeresque, risker ventures in small to mid-cap individual stocks. So for the next 2-3 years, $4000 invested each year, with large jumps in the years to follow going into the main port.

OR

Option B)
Not open the Roth IRA, and combine $2000 annually into the portfolio evenly, along with the annual contribution schedule outlined above.


I can't reach the conclusion if having more money together will create more compound interest faster, etc...or if I should split it up simply so that when I reach 59.5 (Hope I make it that far!) I've got quite a bit available tax-free.

Thanks for any enlightenment Fellow Fools!

Jacob
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