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If it isn't only a rich people thing, then how do people amass hundreds of millions and even billions in Roth IRA accounts? Those numbers far exceed, by many or
by bmitc 3y ago
If it isn't only a rich people thing, then how do people amass hundreds of millions and even billions in Roth IRA accounts? Those numbers far exceed, by many orders of magnitude, the contribution limits and assumptions of 10% growth over decades.
- Spivak 3y agoBecause Roth accounts aren't taxed on the growth, and the growth is unbounded. 1. Put in $6000/yr into your Roth. 2. Invest in low-cost, high-risk high-reward stocks. 3. Get lucky. 4. Boom your Roth is worth millions. For more seed money look at the list of the accounts you're still allowed to roll-over into Roth IRAs, pump money into there, and roll them over. The only "rich person" thing is some people have access to non-publicly traded stocks but I have those and I'm certainly not rich.