How do I make my teacher a rich millionaire by retirement?!?

Okay, I got this finance project as an alternative project to what the class is doing because I am excelling in the class. I was asked to make a retirement plan for my teacher, who earns $43,000 a year, $75 a month goes to her Roth IRA and $75 a month goes to her 403(b). She owes $118,000 on her house, $10,000 on her car and $25,000 college debt. I can get more info if needed.

Now the question is, how should she invest her money and in what should she invest her money to have a nice retirement. She is 25 and should retire by 65 or earlier. I have an idea of what she should do, but I am not familiar with Roth IRA or 403(b)... therefore, I am not sure how she should use those to her advantage.

Thanks!

Try getting information from Sue Orman. She's probably got information about this floating out there. If she ignored the debts and found someone to sponge off of she could become a millionare quick, but I'm guessing she doesn't want to do it that way. :-)

If you're "excelling in the class", you should be able to figure it out.

With those type of expenses, she may not have any money left over to invest. It is important to know if she has any money to invest to begin with.

If she can invest 200 a month for 30 years in a IRA, she will be a millionaire.

Let's round off and make a few assumptions.

40 years x $50,000 is $2million
After taxes, which currently average 40%, her lifetime income will be $1.2million.
After she pays off the house she could have $500,000 equity. She's half way there.

$150 per month savings times 480 months is $72,000.
http://www.google.com/search?hl=en&q=150...

Look up the historical records for QuagX (a mutual fund) and BRK-B (Warren Buffett's company).

http://finance.yahoo.com/q/bc?s=QUAGX&t=...

By compounding at 20% for 40 years, her investment could increase by a factor of 1,000. $72,000 becomes $72 million.

http://www.google.com/search?hl=en&safe=...

BUT she could have children, inflation could increase, historical stock trends might droop to 10%, ...