A realistic rate of return on a Roth IRA is dependent on the investor's personal goals and expectations. A realistic rate of return could mean you expect to earn 7% or 8% on your investments each year, but it could also mean you expect to earn 10% or 15% per year. In general, it is best to aim for a higher rate of return than what you can actually expect to receive. By doing so, you will be more likely to reach your goal. The most important thing to remember when investing in a Roth IRA is that the investment gains are tax-free. Therefore, if you invest in a Roth IRA with a high rate of return, you will not be taxed on the gains until you withdraw the funds from the account.