05/07/2026
⭐The Roth IRA Opportunity: Why Starting Early Can Make a Big Difference!
A Roth IRA is a powerful retirement savings tool because contributions are made with after-tax dollars, and qualified withdrawals in retirement are tax-free. This allows your investments to grow tax-free over time, which may enhance the benefits of compound interest.
🌱Example of Long-Term Growth:
• Investor A (Starts Early): Contributes $7,000 annually from age 25-49, then $8,000 annually from age 50-65. At an assumed 8% annual return, the Roth IRA hypothetically grows to $1,840,548 by age 65.
• Investor B (Taxable Account): Contributes the same amounts but in a taxable account (25% tax rate). Under the assumptions shown, the account grows to $1,106,610.
Unlike taxable accounts, Roth IRAs avoid annual taxes on dividends, interest, and capital gains, allowing more money to stay invested and compound over time.
⏰The Importance of Starting Early! The earlier you begin, the more time your contributions have to grow. Even small, consistent contributions may lead to significant retirement savings due to the power of compounding.
💰2026 Contribution Limits: $7,500 annually ($8,600 if age 50+).
🗝️Key Takeaway: If eligible, consider funding a Roth IRA to take advantage of tax-free growth, disciplined contributions, and the long-term benefits of compounding. It’s not just a retirement account—it’s a wealth-building strategy!
Whether a Roth IRA is appropriate depends on an investor’s individual financial and tax situation. Hypothetical example for illustrative purposes only. This example is based on the assumptions shown and does not reflect actual investment results. Past performance does not guarantee future results. Investment returns and principal value will fluctuate. Roth IRA eligibility and tax benefits are subject to IRS rules and income limitations. Investors should consult with their tax advisor regarding their individual situation. Assumes a hypothetical 8% annualized return for illustrative purposes only. Actual returns will vary and may be lower. The example does not fully reflect investment management fees, expenses, inflation, or changes in tax rates, contribution limits, or market conditions. For more information about Janney, please see Janney’s Relationship Summary (Form CRS) at www.janney.com/crs which details all material facts about the scope and terms of our relationship with you and any potential conflicts of interest.
