Using Roth IRAs to plan for your future - KFVS12 News & Weather Cape Girardeau, Carbondale, Poplar Bluff

Using Roth IRAs to plan for your future

(KFVS) -

You may find yourself asking - how can I provide for my family, and plan for the future?

Money experts in the Heartland say it's a more urgent concern among young families and single people in today's economy.

So, Holly Brantley went to get some answers for you.

With as little as $25 a month you could generate more than $100,000 for your retirement. And that's just the beginning.

Many young people tell me they are putting their money into Roth IRA's. But unfortunately, they feel many of their friends are missing out on making a future fortune.

Jennifer Kern is a mother, wife, and registered nurse. She says she's no money magician, but she knows her stuff when it comes to her family's investments.

"You're probably thinking how do I do this?" said Kern.

Besides stocks and 401K plans, she and her husband, a mail carrier, have a Roth IRA.

It is a tax free way to grow your money. Something she recommends to anybody no matter who you are or how much money you make.

"I couldn't believe it when I got a statement, and I thought on my gosh - I can't believe I've got that much in there," said Kern. "There's no age restrictions for a Roth IRA as long as you are working or your spouse is working you can virtually be of any age and have a Roth IRA."

Financial advisor, Cheryl Mothes says Roth IRA's are awesome because the money you put in grows tax free.

"What you put in, you can also take out anytime-tax free," said Mothes. "And you don't have to put in much. We have some investment plans that you invest as little as $50 or $25 a month and but again it builds up,"

So here's an example we put together:

Let's say you're a working and in your 30s and wanting to invest $50 to $100 a month.

It's money for stuff you could live without; a few trips for coffee, tickets to an event and a new shirt.

When it's time to get that money out in 30 years, you'd have between $100,000 and a $250,000.

"I think the excitement comes in as time flies and you see how that grows just by contributing a little bit," said Mothes.

Back to the Kern, she says they usually invest by lump sum, usually investing income tax returns.

But she also recommends withholding money from your paycheck.

Kern says her family may not be wealthy, but they are dreaming of riches in the future.

"It's just exciting to see it growing to say oh let's buy this or something we can do together to prepare for the future," said Kern.

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