If my husband and i fully fund our Roth IRAs, how many years will it take us to reach our first million?

Question

$5000 x 2 = $10,000 per year

assume they generate 12% interest

Answer 1

Assuming you both go to 500k, 21 years at $416.67/mo each.

27 Years if you both go to $1 million at the same rate.

This does not take into account increased limits.

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The above fails to account for the fact there are 2 separate accounts and not one.  It is impossible to have a joint IRA.

Answer 2

@12%, funding $10,000 ($5,000 in each Roth IRA) would get you $1million in 23 years. This is an approximation (keep in mind that maximum allowed contribution will go up as years go by):

Year Contribution End of year balance

1 10000 $11,200

2 10000 $22,544

3 10000 $35,249

4 10000 $49,479

5 10000 $65,417

6 10000 $83,267

7 10000 $103,259

8 10000 $125,650

9 10000 $150,728

10 10000 $178,815

11 10000 $210,273

12 10000 $245,506

13 10000 $284,966

14 10000 $329,162

15 10000 $378,662

16 10000 $434,101

17 10000 $496,193

18 10000 $565,736

19 10000 $643,625

20 10000 $730,860

21 10000 $828,563

22 10000 $937,990

23 10000 $1,060,549

Answer 3

About 25 years.

Here's a chart:

http://www.ncnblog.com/2008/06/16/a-full...