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How Can You Benefit With An IRA?


Because IRAs are Individual Retirement Accounts, the way they help you save for retirement depends on your "individual" employment and financial situation. No matter how much you make or what kind of pension plan you have at work, every wage earner under 70-1/2 can contribute to an IRA.

And the interest earned plus any tax-deductible contributions you are eligible to make are completely tax deferred until you begin withdrawing money from your IRA at retirement (anytime between ages 59-1/2 and 70-1/2). The IRA Growth Chart below gives you an example of the substanatial earnings possible with an IRA investment.


IRA Growth Chart

Value of
Your IRA
After
If You Contribute
$ 500 /Year
($ 9.62 /Week
If You Contribute
$ 1,000 /Year
($ 19.23 /Week
If You Contribute
$ 2,000 /Year
($ 38.46 /Week
1 Year $ 535 $ 1,070 $ 2,140
5 Years $ 3,077 $ 6,153 $ 12,307
10 Years $ 7,392 $ 14,784 $ 29,567
20 Years $ 21,933 $ 43,856 $ 87,730
30 Years $ 50,537 $ 101,073 $ 202,146
40 Years $ 106,805 $ 213,609 $ 427,219

The above chart assumes an interest rate of 7% compounded annually.
Interest rates on IRAs may fluctuate to some extent over the life of the
account. Substantial penalties for early withdrawals.


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