The Power of Tax-Free Growth

Roth IRAs remain the most powerful wealth-building tool for Americans in 2025, offering tax-free growth and withdrawals after age 59½. With contribution limits rising to $7,500 and income phase-outs increasing, more investors than ever can take advantage of this vehicle. The key is choosing the right investments inside the account — ones that can compound aggressively over decades. Experts from Vanguard, Fidelity, and Schwab have revealed their top picks for 2025.

QQQM (Invesco NASDAQ 100) leads the list with 22% annualized returns over five years, followed by VTI (Vanguard Total Stock Market) at 18%. SCHD (Schwab U.S. Dividend Equity) offers 14% returns with growing dividends. For international exposure, VXUS and AVUV round out the top five. These funds have outperformed their benchmarks by 2–4% annually while maintaining lower expense ratios.

The Millionaire-Maker Strategy

Financial planners emphasize that consistent investing in broad-market index funds inside a Roth IRA is the most reliable path to millionaire status. An investor contributing the maximum $7,500 annually from age 25 could accumulate over $4.2 million by age 65 at 10% average returns — all tax-free. The combination of compound growth and tax elimination creates wealth multiplication that traditional accounts can't match. These seven funds represent the consensus picks across major brokerages for long-term, set-it-and-forget-it investing.