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Scott Caufield Quoted in Business Insider

Scott Caufield, a financial advisor and CPA, says that for the average person to achieve significant growth in a Roth IRA, you’d have to concentrate your Roth into a single security that you believe has massive growth potential. While this is a risky strategy (and shouldn’t be attempted with money you can’t afford to lose and should be part of an overall balanced portfolio), a concentrated single stock position is one of the most common ways fortunes are made. 

“For instance, if you were an early believer in Amazon and put $10,000 into a Roth IRA in Amazon shares at an adjusted price of $1.50 at their IPO, your Roth would be worth nearly $23 million today without any further contributions,” says Caufield.

This does mean risk, Caufield says, since the issue of course is that it is nearly impossible for anyone, let alone the average person, to predict the massive winners of the future. 

“For every success story like Amazon there are hundreds more failures,” he says. 

Read the full story here.