Page 103 - Charles Calhoun Book Rich As You Want To Be

would be worth a total of $1.8 million. It’s amazing

to think that you could invest just $20,000 and

then have a portfolio worth $1.8 million down the
line. This could produce an income of $144,000

per year or about $12,000 per month. But what is

special about the Roth IRA is that those $12,000
per month are totally tax-free, forever! It would not

be reduced by taxes. That is a great, great thing!

And most people could do that.

If taxed at 35 percent instead of the $12,000,
you would have only $7,800. Ask yourself, would

you rather have $12,000 or $7,800 to spend each

month? Making your choice a Roth IRA would
result in the higher figure.

But what would happen if instead of
stopping after just five years, you were to save

($4,000 to $5,000) every year for the entire forty

years? Your portfolio would be worth $3,960,800
dollars. That would produce an income of about

$317,000 per year or about $26,000 per month.

Taxes on that same $317,000 would be
about $100,000 if it were taxable. But with the

Roth IRA, there would be no taxes. This would save
you about $100,000 per year. Or put another way,

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