How to Retire with $3 Million on a $70,000 Salary
Achieving a portfolio balance of $3 million is no easy feat: this usually doesn't happen by accident. If you earn $70,000, some of the lofty retirement numbers you hear might seem daunting. But there are a number of ways to get to $3 million as long as you can be both patient and consistent. Here, we'll look at a few key pillars of achieving a huge portfolio balance by the end of your working life.
Simply contributing the current annual maximum to your Roth IRA of $6,000 from age 22 to age 67 makes a world of difference for two reasons. First, Roth funds are shielded from future taxes: money in a Roth has already been taxed and will never be taxed again. Next, if you choose to invest in low-cost index funds in your Roth, the account won't require any ongoing maintenance and you won't need to spend any time picking and choosing investments.
Check out the below table to see how your Roth IRA could grow over a full working career:
Source Fool.com
