How do I make my teacher a rich millionaire by retirement?!?
Okay, I got this finance project as an alternative project to what the class is doing because I am excelling in the class. I was asked to make a retirement plan for my teacher, who earns $43,000 a year, $75 a month goes to her Roth IRA and $75 a month goes to her 403(b). She owes $118,000 on her house, $10,000 on her car and $25,000 college debt. I can get more info if needed. Now the question is, how should she invest her money and in what should she invest her money to have a nice retirement. She is 25 and should retire by 65 or earlier. I have an idea of what she should do, but I am not familiar with Roth IRA or 403(b)... therefore, I am not sure how she should use those to her advantage. Thanks!
Public Comments
- If you're "excelling in the class", you should be able to figure it out.
- With those type of expenses, she may not have any money left over to invest. It is important to know if she has any money to invest to begin with.
- If she can invest 200 a month for 30 years in a IRA, she will be a millionaire.
- Try getting information from Sue Orman. She's probably got information about this floating out there. If she ignored the debts and found someone to sponge off of she could become a millionare quick, but I'm guessing she doesn't want to do it that way. :-)
- Let's round off and make a few assumptions. 40 years x $50,000 is $2million After taxes, which currently average 40%, her lifetime income will be $1.2million. After she pays off the house she could have $500,000 equity. She's half way there. $150 per month savings times 480 months is $72,000. http://www.google.com/search?hl=en&q=150+*+480 Look up the historical records for QuagX (a mutual fund) and BRK-B (Warren Buffett's company). http://finance.yahoo.com/q/bc?s=QUAGX&t=5y By compounding at 20% for 40 years, her investment could increase by a factor of 1,000. $72,000 becomes $72 million. http://www.google.com/search?hl=en&safe=off&q=%281.2%29+**+40+&btnG=Search BUT she could have children, inflation could increase, historical stock trends might droop to 10%, ...
