What is IRA – MoneyPerception

  • If the investment in your IRA account has a good return for a long period, the money may grow substantially at your retirement. For example, if you put $100 into an account with 5% yearly investment return, you will have $105 in the account after one year, but after that, investment return will build on the $105 so that after the second year, the balance will be $110.25, and after 20 years, the balance will be $265.33!

    Even though the benefit is not unique to IRA account and you will enjoy the same benefit for your regular investment account, the significant tax benefit of IRA account may encourage people to save more to enjoy the benefit.