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My Roth IRA is gaining nicely...really nicely.

October 13th, 2006 at 01:32 am

Just for fun, I crunched the numbers on my Roth IRA, which is invested in Vanguard's Target Retirement 2050 Fund.

Since 8/31, I have invested a total of $7,031.72.

As of today, my Roth is worth $7,284.21.

That's a 3.59% growth in the past 1.5 months, or a monthly growth rate of 2.39%.

Extrapolate this out to a year, and that's an annual growth rate of 28.7%.

If I calculate just by share price, the growth rate becomes 29.9%.

Is this for real?? EEK!

I'm sure that the growth rate won't actually hit this obscenely high figure, and average annual growth rate will actually end up being more in line with the other Target Retirement funds at 12% to 13%.

But it's still nice to dream. Wink

And my father has started asking me for investment advice, since his retirement fund isn't doing nearly so well (it's actually losing money). ME! And he asked me about variable annuities, and I actually told him some info on those that he didn't know before.

*scurries off to continue reading Business Week Guide to Mutual Funds*

Oy, what is the world coming to??

2 Responses to “My Roth IRA is gaining nicely...really nicely.”

  1. Broken Arrow Says:

    Heheh. It's good to see a man who can swallow his pride enough to ask for help, especially when it comes to his retirement money. Big Grin
    I am so itching to have a Roth myself. Really am! Will probably do just that whenever I can get around to saving for a house....

    However, my 401k, with its 100% contribution match trumps that right now. I mean, Roth just can't beat the 28% guaranteed return BEFORE it's even invested right now.

  2. PRICEPLUS Says:

    The most powerful force in the universe is compound interest.
    -Einstein


    The idea is, in my humble opinion, Indexed mutual funds and or ETF's built using dollar cost averaging. It sounds like financial affairs are looking good for you! Way to goSmile

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