How I Turned a $3,000 Internship Stipend Into a $20,000 Roth IRA

The Story

"At 21, I earned a $3,000 summer internship stipend. Instead of spending it on travel or shopping, I put it into a Roth IRA. 10 years later, that single summer decision grew into over $20,000."

Advisor Breakdown

Situation:

• College student, first paid internship, $3,000 stipend.

• Temptation = spend on lifestyle expenses.

Task:

• Decide between instant gratification vs long-term investment.

Action:

• Opened a Roth IRA with $3,000 contribution.

• Invested in a low-cost S&P 500 index fund.

• Left it untouched for a decade.

👉 I like this because it shows how small, intentional choices in your early 20s can snowball into serious wealth. The tax-free growth of a Roth IRA makes it especially powerful for young investors.

Result:

• At ~7% annual growth, $3,000 → $20,000 in 10 years.

• Lesson: time in the market matters more than timing the market.

Key Takeaways

• Early investing multiplies small amounts.

• The Roth IRA = tax-free growth + flexibility.

• Generational wealth starts with habits, not windfalls.