Roth IRA Goal Update

by Kevin on March 4, 2008

We have officially reached 50% of one of our 2008 goals. We wanted to put as much money away in Roth IRAs for 2007. We got a late start, but we have officially fully funded one of the Roth’s with $4,000. We won’t have enough time to start the second one because Vanguard’s minimum investment for the funds we are targeting is $3,000. By early summer we should have enough to open up the second account. From there it is a lot easier to invest because your minimum additional investment is only $100.

Nonetheless we’re very excited to have one account fully funded. Assuming an 8% even return while holding the Roth IRA, in 42 years that $4,000 should be worth $109,466 in today’s dollars. I’ll take that!

Living today like no one will, so we can live tomorrow like no one can. I love that motto from Dave Ramsey!

{ 4 comments }

Future Millionaire March 4, 2008 at 5:48 pm

Congrats Kevin on being 50% complete with your Roth IRA goal.

I too have almost the same issue with Vanguard’s minimum requirements. It wish they would figure out something other than the star fund to allow us to invest in funds when you have less then $3k to contribute.

Seb March 4, 2008 at 8:44 pm

Congrats! We just added to our Roth IRAs last month. While parting with all that money hurts in the short term, it sure does pay off in the long run!

Fiscal Musings March 4, 2008 at 10:16 pm

That’s quite the accomplishment to fully fund the IRA. There aren’t too many people who actually do it.

And I also love that quote you mention at the end, but I’m not sure that I’d credit Dave Ramsay with it. I’ve heard another similar version of it, and he probably ripped it from somewhere else. Who knows though…

Kevin March 5, 2008 at 6:40 am

Thanks everyone! We’ll really excited and preparing to fund the next one in the next few months.

That may not be a Dave Ramsey original, but I know I’ve heard him repeat it on his radio show.

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