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Vanguard Roth IRA growth rates?
Question : Vanguard Roth IRA growth rates?
I am new to this and would like to know what is the average annual growth rate for a Roth IRA amongst competitive investment banks? What is a reasonable growth rate to expect?
What percent interest do they pay?
ira rates
Best answer:
Answer by Judy
If you just open the vanguard account the money will sit in a
money market account which pays less than 1%
You will need to invest it yourself in stocks or mutual funds.
I think they also offer long term cd’s.
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#3 written by Steve D 1 year ago
Roth IRAs are like any investment – the growth depends on the investment. No one can provide the data you are looking for since no one knows what you would be investing in. For example, a growth fund will appreciate/depreciate faster than an income fund (different target investments), while a tech fund will grow/decline differently than an energy fund.
One does not just walk into an investment house and say put my money in an IRA…you need to tell them exactly how to invest that money based upon your risk tolerance, your length of time until withdrawal (the longer the time, the more aggressive you can be), etc.
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I opened a Vanguard Roth IRA in January of 2009 (Vanguard STAR fund), and it is returning 12% annualized over 5 yrs.
Vanguard has some good funds, and some bad funds. Just look athe long term return rates (over 10 years).