Yes, you can become a multi-millionaire by simply fully funding your Roth IRA. America is pretty great, am I right?!

Roth IRA: A retirement tool that allows you to contribute $5,500 post-tax dollars annually. You can invest it in the stock market and the growth and withdrawals are tax-free.

One of my goals each year is to fully fund my Roth IRA. I started funding my Roth IRA when I was 10 but I wasn’t too consistent each year. But since age 18, I’ve been filling my Roth IRA to the max each and every year. Now, it comes to me as natural as brushing my teeth twice a day. I figure, if I always fund it, my financial life will always be pretty healthy.

What My Roth IRA Will Look like at Age 70

For easy math, let’s just say I didn’t start putting money into my Roth IRA until age 18. Let’s assume an 8% annual return (very reasonable as the benchmark S&P 500 has gained nearly 12% since inception). The max annual contribution is $5,500. The money grows tax free. I just throw my Roth IRA money in a easy-peasy lazy portfolio I created over at Vanguard.

Will the Roth IRA Go Away?

By age 70, I’ll have $3,987,645.24. Given my frugal lifestyle, that’s a nice chunk of change! Even with inflation, that could possibly be enough to retire on. All from simply tucking away $5,500/year. That’s not a lot of money. Also, I began investing large amounts right after the ‘lost decade’. That means, I began investing at the end of a low-earning period in history. It’s like starting to invest after the stock market crash of the early 20th century. A great time to buy. I timed the market without even trying. I don’t recommend you try to ever time the market – I just got lucky. And I am very bullish on the future of this country and the world – there’s lots more money to be made. Oh, and people age 50+ can contribute another $1,000 annual to their Roth IRA. I think that was added to help the late bloomers catch up. I didn’t take this into account with my near $4 million figure. So really, I’ll have $4,037,072.12. Jeez, that really illustrates the power of compound interest. Even with that extra $1k per year, the final result doesn’t change much. Just another illustration which should encourage everyone to begin investing ASAP.

Also, the annual contribution limit will keep increasing as it has in the past. Even since I started habitually investing, the limit has raised $500. My annual goal will still remain ‘Max out Roth IRA’ no matter what the limits are. If they go up, it’ll just push me to work harder.

Although, at some point in my life, I may not qualify for the Roth IRA. The ‘phase-out’ period for an individual contributing to a Roth IRA is $116,000 to $131,000. If you make this amount of money, you may still be able to contribute but you’ll need to get creative. Read these articles to plan your perfectly legal scheming:



Main Street Hub

One day, I’ll make more than $116,000 per year. Maybe I’ll come back to this post and give my personal experience. But I still have a looong way to go! Having a long way to go doesn’t mean it’ll take that much time, I just have to ramp up my income!

Will the Roth IRA Go Away?

No. I Googled the heck out of this and found zero reason to think otherwise.

Go fully fund your Roth IRA right now!!!

I wrote this post to illustrate how little effort it takes to become wealthy – if you begin building wealth early enough in life. Seriously, go fund your Roth IRA. If you don’t find yourself with an extra $5,500 to invest each year, get a job delivering pizzas. Seriously. There are always ways to make more money. Always. 

Use this calculator to determine how rich you will become by simply funding your Roth IRA.