I recently opened one and understand I can put money in all year up to $6000. I understand I can buy stocks, mutual funds, and ETFs. But how does it grow? How do the models show exponential growth?
In: 7
Just keep funding it every year without fail. If you put the money into an S&P 500 index fund, it will out-perform 80% of the mutual funds out there. In time, and I mean in decades, you will seriously thank your younger self because it really grows. The time value of compounding returns is a beautiful thing. And when you’re 59-1/2 years old, you will be able to take tax-free distributions.
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