by Carolyn Rothwell on March 27, 2012

Financial Planners – Have you heard about the Roth IRA Movement?

There is a Roth IRA Movement going on, all thanks to Jeff Rose, CFP® with his blog post and efforts to get others involved:

With this post, he has started an event that has drawn lots of attention with over a 150 financial writers all working together to share the same message:


Jeff shares a chart that illustrates the importance of saving at a young age by comparing two investors, which first caught his attention in his college finance course.

Saver  1: “Super Saver Parker”
Started saving at age 25 to a Roth IRA with contributions of $2,000 per year for 10 years.  Super Saver Parker’s total contributions amount to $20,000.

Saver 2: “Super Slacker Saver”
Started saving at age 35 to a Roth IRA with contributions of $2,000 per year for 30 years.   Super Slacker Sloane’s total contributions amount to $60,000. 

Using the same assumptions as his charts, I quickly plugged the numbers into Silver Financial Planner to illustrate the results.

Illustration 1 - Saver 1: “Super Saver Parker”

RothIRA1With contributions of $2,000 per year from ages 25-35, assuming an 8% return, the Roth IRAs projected balance at age 65 is $327,359.

Illustration 2 - Saver 2: “Super Slacker Slone”

RothIRA2With contributions of $2,000 per year from ages 35-65, the Roth IRAs projected balance at age 65 is $254,432.

Even though Saver 2 contributed $40,000 more to the Roth IRA, thanks to Saver 1’s early contributions Saver 1’s Roth IRA account balance is projected to be worth over $70,000 more at age 65.  

It is very interesting to read the variety of discussion topics when it comes to Roth IRAs. has compiled a list of blogs posting articles on the Roth IRA movement:

Money Tree Software wants to thank Jeff Rose, CFP® for his energy and hard work to start this movement and we are happy to share it with our readers.

Carolyn Rothwell

Carolyn enjoys spending her time building Money Tree Software's brand and products. Her experience creating and delivering financial plans for a full-service financial planning firm and supporting advisors working to provide the best planning to their clients as a Money Tree support member has provided an excellent understanding of the importance financial planning.