Question

When is it possible to fund a million dollar balance in a newly established IRA?

Answer 1

To fund a million dollar balance in IRA one must have to start very early in their life for savings.

One must plan properly what portfolios they have to invest in whether it is Roth IRA or Traditional IRA. They have to start planning early and start saving early to achieve a million dollar balance with them.

When we invest in Roth IRA the balance is covered in the way as shown below:-

We can invest $5500 per year in IRA if we are under the age of 49, that is $458.33 every month we need to save.

As Roth IRA pays taxes when going in not at the time of taking out all the contribution done can be withdrawn without paying the taxes.

The amount from Roth Ira can be withdrawn at the age of 59 1/2 years. So if we can get a return of 8% interest rate every year we can make our investment into a million dollars in approx 40 years. And as we can withdraw our investment from Roth IRA only after 59 1/2 years we can start investing in a newly established IRA at an age of 20 years.

If we keep this in mind and try to follow and save this much of amount every year from the age of 20 and invest in the proper IRA and get 8% interest on the ROTH IRA we can achieve the funding of million dollar balance at the age of withdrawing the IRA amount whenever needed.