The average retuern on the stock market has been 11.8%. Over a period of 40 years, your reward will be great. Of course the market is risky, but over time it pays off. Below are two graphs I created. Pretend the top graph represents if you invested in the S&P 500 and you get a retuen of 12%. Below represents a certificate of deposit that earns interest at 5%. As you can see, over time the difference becomes greater between the two and can literally mean a difference of $1,000,000..
Now this is my plan. I am investing in the ROTH IRA for the next 40 years. I will be investing in the stock symbol QQQ. QQQ is like a fund, it represents 100 NASDAQ well grounded companies,so it's pretty diversified. I also like QQQ becasue it heavily weighted on high tech. Although it's risky, I have a very long term outlook. I think QQQ will outperform the S&P 500 due to it's nature becasue high tech is all about growth. It's also all about taking risks. There are good funds you can invest in like one that mimicks the S&P 500. Funds minimizes risk yet provide a good return. Do your own homework on which fund is for you. Using the ROTH IRA for 40 years will help you retire in comfort, and you won't owe the government anything from it.
