IRA Day
D | Friday, April 15, 2005

---

As I am sure everyone is aware, today is Tax Day (basically a holiday where I work). I've taken a billion calls in the last week about how to contribute to an IRA. As such, I am just curious - How many of my readers currently have a personal retirement account (IRA, 401k, Roth, Keogh, etc)?

Since the majority of my readers are still in school, I am going to say 90% of my readers do not have a retirement account. Then again, since the majority of my readers are under the age of 30, this might not be that big a deal, right? Wrong! For fun check this out:

Scenario #1: Bob Millor (on the advice of his financial advisor, Adam Ha) starts investing when he turns 35. Ever year from 35-60, he contributes $2,000 (total contributions of $50,000). At an 8% rate of return, he would retire with $157,870.38.

Scenario #2: Doug Walker, an independent investor, sets aside $2,000 per year from the time he is 25-35 and then never contributes another dollar (total contributions of 20,000). At a 8% annual rate of return, he would retire with $222,928.48 or $65,058.10 more than Bob.

Food for thought? Not really. I don't know about you, but I am poor as all get out and can't afford (read would rather blow my money on women and beer) any retirement savings. Ce la vie (Al, is that correct?).

D | 4/15/2005 05:07:00 PM |   Post your comment

---

Comments:

C'est la vie.
Anonymous | April 15, 2005 6:16 PM | permalink
 

---

I have a Roth, but I too am also stupid-poor, and so I have only contributed about $300.

Somehow, I don't think that it's going to get me through my golden oldies.
nikivet23 | April 15, 2005 6:34 PM | permalink
 

---

Thios is it! my forst drunk message, iv e done it, drunk bloggging. and it was in spired by you D-town. I dont have an 401k, isnt thT A RACEor something? Peace!
Ter | April 17, 2005 2:54 AM | permalink
 

---

Post your comment