The Gift of a Roth IRA During COVID-19 and Turbulent Times Plus Wise Words by Keynote Speaker Kevin O’Leary
With the ongoing volatility and projected lull in the markets, related to COVID-19, many companies have become undervalued, meaning now could be a better time than ever to invest.
Kevin O’Leary, acclaimed investor, Shark and keynote speaker, seeks out such opportunities whenever he can find them. He likes to think of every dollar he invests like soldiers, “I send them out to war everyday. I want them to take prisoners and come home, so there’s more of them.”
So how can you take advantage of this opportunity, especially if you’re not Kevin O’leary or a keynote speaker?
For most of us, earning less than $139,000 annually, the beauty of a Roth Individual Retirement Account (IRA) is something to behold. By contributing a small amount of money to this account each pay period, you can earn hundreds of thousands of dollars more than if that money sat in a regular savings account.
A Roth IRA will allow you to set aside after-tax income up to a specific amount each year ($6,000 if you’re under 50), with all earnings on the account tax-free!
But just how much can you earn?
If you begin to contribute the maximum amount to your Roth IRA, your potential earnings could increase up to $594,513 more than your money would earn in a savings account alone.
Over a half-million dollars is a hefty payday, especially when you’re entering retirement.
Some investors will prefer to manage their IRA on their own, which means actively choosing how the account is invested in stocks, bonds, etc. – this requires intimate knowledge of the markets, but can prove rewarding. Others can choose to have their financial advisor or institution handle their investments for a fee.
The best way to find yourself comfortable in retirement is to save as much as you can, whenever you can – and that’s now! Give your future-self a break, and open a Roth IRA.
Matthew Reinhardt is the Finance Manager at BigSpeak Speaker Bureau. He regularly contributes to BigSpeak Spotlights on the subjects of finance, work culture, HR and work-life balance.