If you could make more aggressive investments and earn a 7% return, you’d have close to $18,500 by just maintaining those $60 monthly contributions for five years. What would it take to double that amount over the next five years? Using a moderate average return of 4%, you’d just need to contribute $120 a month to either a traditional or Roth IRA to double the value to $20,000.Īnd if you’re only starting out with $5,000, you could double it to $10,000 by contributing $60 a month, assuming a 4% average return. Let’s say you have $10,000 in a Roth IRA. Just about everyone is eligible to make contributions to an Individual Retirement Arrangement or IRA, even if you don’t have a retirement plan at work.
#DOUBLE TAKE MAX 6 HOW TO#
Example of How to Double Your IRA Money in Five Years If you have a more growth-oriented portfolio with a moderate 6% return, your 401(k) would be worth over $45,600 in five years. When you crunch the numbers, all it will take for your portfolio to double in value to $40,000 in the next five years is an average return of 2.7%! That’s entirely doable. If you contribute $3,200 a year, that’s $267 per month. You also might be getting a juicy employer match on top of your contributions, but I’ll also assume that you have a stingy boss who doesn’t kick in a dime. You’re doing a great job at work, right? So you’ll probably get a raise or even a promotion in the next five years-but I’m going to be conservative and assume that you don’t.
If you decide to contribute 8% of your gross income to your 401(k), that’s $3,200 a year. Let’s start with a typical example: Say you earn $40,000 a year and have a 401(k) that’s worth $20,000. Example of How to Double Your 401(k) Retirement Money in Five Years Keep reading and I’ll show you how to do it without rolling the dice on risky investments.
Does the thought of doubling your retirement money in five years get you pumped up? It doesn’t matter if your money is in a workplace retirement plan or an IRA, you can accomplish this goal.
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