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?
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The account is simply a legal tax shelter. The investments you decide to invest in should grow over time due to what they own. The Roth IRA allows you to put after tax money in and let it grow completely tax free. If you’re young, it’s a great vehicle, as your distributions are tax free in a long time, when the money should have grown substantially.
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