Are Roth IRAs good for retirement?

Members and their kids keep asking me this question.

Consider two choices: 401k with matching money and Roth IRA.

If your 401k has no match, skip it. Yes, a 401k does reduce your income for tax purposes now and lets your eggs grow tax-deferred. If you invest 10% of your gross, say $3000 a year, you could have $1.2 million in 35 years. However, when you take it out, you may pay 25% or more in federal and state income tax. (We will likely pay Bush’s ‘free ride for the rich’ in the future.) Your tax rate is lower now. Pay the tax on the $3,000 now and avoid tax on the $1.2 million later. Inflation takes HALF your buying power every 25 years, so a MILLION BUCKS won’t buy what it used to. So add $10 a month every year to make up for inflation.

Matching funds from your employer is FREE money! Take it. If you receive 50% on your first 5% of salary, that’s $750 a year. Add that to your 10%--$3,000--and you may find $1.5 million in 35 years. You may have to pay $388,000 in tax on that, but at least you will have $1.2 million to enjoy for the rest of your life.

No matter what you do—401k with match or Roth IRA--success in retirement savings is just a matter of sticking with it. Put your savings and investing on automatic and your retirement income will be assured. Your employer or mutual fund trustee can debit your account monthly for the $250 and you don’t have to worry about retirement again. Our members show you how they did it. They bought “assets that grew by themselves.” They didn’t have to rely on bad investment advice. They didn’t have to write a monthly check.

Start TODAY! It takes 30 minutes. I will email you our FREE Guide: http://www.theinsidersguides.com/freeguide.html