One Day, Your Roth IRA Gains Will Equal the Annual Contribution

One Day, Your Roth IRA Gains Will Equal the Annual Contribution

The investments held in a Roth individual retirement account (Roth IRA) determine the return, not the interest rate. When you save for retirement in your Roth account, it’s important that you work toward a specific investment goal rather than just maximizing your yearly contributions to minimize your tax bill. If you have not yet determined an investment goal, here is a formula for estimating how much you’ll need in your nest egg to fund the retirement lifestyle that you want.