Tuesday, March 8, 2011
Greetings Thrifty Friends,
Here's a thoughtful gift from Uncle Sam: Any money you put
into a Roth IRA (after you pay your income tax, of course)
grows absolutely tax free. You won't owe a dime now, nor
when you cash it out in retirement.
Keep pinchin' those pennies,
Penny
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TODAY'S THRIFTY TIP: OPEN A ROTH IRA
If a 25-year-old contributes $5,000 each year until he or
she retires and makes an average annual return of 8 percent
on his investment, he'll have $1.4 million saved by the time
he retires at age 65. If he invested that money in a taxable
account, however, he'd only have about $1 million if his
earnings were taxed at 15 percent -- that's 28 percent less
money.
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