Roth IRA: Putting $1,000.00 in a Roth IRA account really worth it?

Question

Roth IRA: Putting $1,000.00 in a Roth IRA account really worth it?

Answer 1

Without knowing more details:  YES.

Put that in and put in even more after that, up to the limit if you can.

Answer 2

At the long term average return of the US stock market, $1000 left alone for 30 years comes to over $26,000.  That assumes NO additional investment.

Without more information, my best answer is: More than likely, YES.

Answer 3

It depends on what else you might do with that $1,000.  If you have credit card debt at an interest rate greater than 5%, then you are probably better off paying off the credit card (as long as you then keep the cc balance at zero).  If you don't have any debt, then ROTHs are a great tax saving strategy.  Your ability to use a ROTH is limited if you make more than $100,000, so if that is the case, check out the rules at the IRS website.  I also like Ed Slott's website, IRAHELP.COM for great IRA strategies.

Answer 4

The ROTH IRA account is the single best way to save for retirement.



If your $1,000 put in today grows to $100,000 in 30 years, you will pay ZERO taxes when you pull it out (assuming you're 59.5 years of age or older when you withdraw it).