OK, that's a silly question. OF COURSE you could use an extra $1000/month. Who couldn't?
For someone in retirement, an extra $1000 would certainly help to make ends meet. According to a recent survey done by the Employee Benefit Retirement Institute (EBRI), only 3 in 5 retirees (60%) feel "very" or "somewhat" confident that they would have a comfortable retirement. This is sharply down from just 3 years ago, when in 2007, 79% felt confident in their retirement.
Did you also know that according to the Social Security Administration that the Maximum Social Security retirement benefit the could be earned by an individual reaching full retirement age in 2010 (age 66) is only $2346/month? Think of how many people receive less than this, and depend on Social Security for the majority of their income in retirement.
What would you do with an extra $1000/month?
Would you do more travelling? Eat out a few more times? Spoil the grandkids? Play more golf? Would an extra $1000/month in income give you a little more peace of mind?
What if I told you that YOU CAN have an extra $1000/month TAX-FREE?
No, you don't have to rob a bank or do anything illegal. This is perfectly legitimate.
No silly multilevel marketing schemes either, where you try to sell junk to your friends and family.
You don't need to be able to dunk a basketball, or pound 300 yard drives that split the fairway.
All you need to do is......
Start putting money into a Roth IRA and make regular contributions. That's it! See - simple, legal, and you get to keep your friends.
Here is how it works. Let's use a 45 year old, starting from scratch. Currently, as of 2010, the most which you can put into a Roth IRA is $5000 per year. At age 50 and older, the maximum contribution is $6000.
Let's say that our 45 year old puts in $5000 per year, and at age 50 starts putting in $6000. Let's also say that we get a return of 6% per year on our money. (Contact me for information on how to get 6%.) For someone who is 45 years old now in 2010, their full retirement age to begin collecting Social Security benefits would be 67.
Age Roth IRA Contribution Ending Balance (6% Return)
45 $5,000 $ 5,161
46 $5,000 $ 10,632
47 $5,000 $ 16,431
48 $5,000 $ 22,578
49 $5,000 $ 29,094
50 $6,000 $ 37,033
51 $6,000 $ 45,448
52 $6,000 $ 54,368
53 $6,000 $ 63,824
54 $6,000 $ 73,846
55 $6,000 $ 84,470
56 $6,000 $ 95,732
57 $6,000 $107,669
58 $6,000 $120,322
59 $6,000 $133,735
60 $6,000 $147,952
61 $6,000 $163,023
62 $6,000 $178,997
63 $6,000 $195,931
64 $6,000 $213,880
65 $6,000 $232,906
66 $6,000 $253,073
Benjamin Franklin once remarked that Compound Interest was the 8th wonder of the world. Saving a nest egg of over $250,000 in 22 years is a great accomplishment.
If you are younger than 45, the message is start NOW. You can do even better.
If you are older than 45, the message is still start NOW!
So how do we get our $1000/month from this?
To get an income of $1000/month, just take 5% per year from this figure $253,073.
$253,073 x .05 = $12,653.65 This is our annual TAX-FREE income from our Roth IRA.
$12,653.65 Divided by 12 months = $1,054.47/Month.
Please Contact Me for more information on how to make this work for you, and create lifetime income from an IRA or Roth IRA. If you live in the South Bend, IN area, I am also happy to help with 401(k) rollovers or IRA reviews. You can follow me on Twitter, Linked In, or Facebook.
My weekly radio show is Improving Your Financial Health on WHME-FM in South Bend, and archives are available for listening on my website.