Written By: Austin Holloway, Business Development – Nuview IRA
Year after year many clients of NuView IRA invest their retirement dollars making killer returns, many consistently in the double digits! But around the middle of April each year our telephones will start to ring; each investor calling seems to be asking the same question… Should I make an annual contribution to my account?
Too often investors will build up a nest egg and then cut off their contributions all together. I can list a multitude of reasons why you would want to contribute each year if you hold real estate, but in general terms I think that the numbers are what really stand out.
|Principal Amount Over 30 Years||$165,000.00|
The annual contribution limit for a Traditional or Roth IRA is $5,500 per year, or $6,500 if you’re over the age of 50. When it comes to self-directed IRAs, a conservative interest rate that we see earned could be said to be 8-10% per year. So let’s plug these numbers in and see what we get out. As you can see from the chart above, by maxing out your IRA each year and reinvesting those dollars you are increasing the size of your IRA substantially. Make sure that each year if you’re on the fence about contributing that you consider all of the factors out there. This is your retirement we’re talking about and it’s important to give it every advantage possible – that is why you self-direct after all!