How much money would a roth IRA make after 40 years with $100 per month being invested?

Question

How much money would a roth IRA make after 40 years with $100 per month being invested?

Answer 1

Below is a sensitivity analysis of monthly payments between $100 to $250 and an annual interest rate of 0% to 15%.  Sorry the presentation does not come up better on Yahoo! Answers.

$100 $150 $200 $250

0% $48,000 $72,000 $96,000 $120,000

1% $58,989 $88,484 $117,978 $147,473

2% $73,444 $110,165 $146,887 $183,609

3% $92,606 $138,909 $185,212 $231,515

4% $118,196 $177,294 $236,392 $295,490

5% $152,602 $228,903 $305,204 $381,505

6% $199,149 $298,724 $398,298 $497,873

7% $262,481 $393,722 $524,963 $656,203

8% $349,101 $523,651 $698,202 $872,752

9% $468,132 $702,198 $936,264 $1,170,330

10% $632,408 $948,612 $1,264,816 $1,581,020

11% $860,013 $1,290,019 $1,720,025 $2,150,032

12% $1,176,477 $1,764,716 $2,352,955 $2,941,193

13% $1,617,907 $2,426,860 $3,235,813 $4,044,766

14% $2,235,438 $3,353,158 $4,470,877 $5,588,596

15% $3,101,605 $4,652,408 $6,203,211 $7,754,014

Answer 2

That depends on the return of your investments within the IRA.  An IRA is not a specific investment, just a type of account.

Answer 3

100000000000000000000000000000000000000$

Answer 4

Who knows, depends alot on your investment, allocation, rate of return ect..

There are calculators out there that may help, but they are not a accurate representation of actual return.  Just fun to play around with.

http://www.bankrate.com/brm/rate/retirem...

Answer 5

Alot of money, a million gujillion dollars.

Answer 6

It requires making an assumption that may or may not prove valid.  That is that the return will average about 8% annually during those 40 years.  About $311,000.  But if you increase your amount to $400 per month, you will increase your total to $1,243,000.   It is possible that the return could average about 10% annually or even greater than that depending on what you would choose to invest your money in.  

At a 10% annual return, about $531,000.  $400 per month at 10% annual return would increase your total to $2,124,000.  

Because of the magic of compounding returns,  the greater your annual investment the greater your possible compound return is likely to be.