The Average Rate Of Return is like a report card for your Roth IRA. It shows how well your money is growing over time, and it's usually expressed as a percentage. For example, if your Roth IRA has an average rate of return of 5%, that means your money is growing by 5% each year.
To put that into perspective, let's say you invested $1,000 into your Roth IRA and it earned a 5% average rate of return. After one year, you'd have $1,050 in your account. Not bad, right? It's like finding an extra $50 in your pocket, but instead of being a surprise, it's a guaranteed growth.
