No Debt Plan

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So we haven’t fully funded our Roth IRAs, but I’m giving away more than $23,000. That makes sense, right?

Well, thanks to ING Direct — it’s true! If you sign up with ING Direct through my referral, we both win. Here’s how I did the math.

• Your Initial Deposit: $250
• Bonus Deposit from ING (for depositing $250+): $25
• Total Principle: $275
• Assumed Interest Rate: 3.25% (current savings rate is 3.4%)

If you leave that $275 in the account without adding any money to it, in 30 years the account will have $729.04 in it. Take away your original principle of $250, and you’ve earned $479.

This assumes:

• interest rates won’t go back up to the 4%+ we’ve enjoyed until the recent federal reserve cuts
• you don’t add any additional principle; if you did, it would be obviously worth much more
• you don’t pay taxes on the interest earned each year (which is untrue, I’m just ignoring it for simplicity)

And just for disclosure sake: I’ll earn a $10 bonus if you sign up.

Setting up an account with ING is a great first step. ING makes it easy to setup multiple accounts so you can save for specific goals. Transferring money is easy. Customer service is great. I can’t say enough about ING. If you’re interested, just leave a comment with your e-mail address!