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If you were to invest $100 today in a Roth IRA in a growth fund like Vanguard's VUG or Fidelity's FDGRX, then add another $100 every week for the next 30 years at a 10% projected annual return post inflation, you'd wind up with roughly $857,000 tax-free for the rest of your life. You contributed $156,300.
Number two, or you could keep that same 100 bucks a week in your traditional savings account earning you a whopping 0.01% and in 30 years it would be worth $156,300. Oh, sorry. I forgot about that 3% pesky annual inflation. So, you'd be looking at closer to $64,000 in purchasing power. So, congrats. You paid the bank over 30 years to lose your money. Same 100 bucks a week, same 30 years, about a $700,000 difference. Any questions?
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