Friday, May 16, 2014

Should college student contribute to retirement plan

Q. As a college student, is it too early to start contributing to a retirement plan? If it’s not too early, which type do you recommend?

A. It’s never too soon. If you put $2,000 into a Roth IRA at 8 percent interest today, you will have $94,000 in 40 years. If you put $2,000 per year into a Roth IRA, you can have more than $1 million in 50 years.


Suze Orman is a award winning certified financial planner and author of several books including 'The Road to Wealth'. She went from being a waitress at age 30, making $400 a month, to now having her own TV show and a net worth of $30 million dollars.