Roth IRA

[sq764]

I have read the manuals, visited the website, thought about it.. BUT..

Can any of you crafty invetsors on the board tell me your thoughts on the pros and cons of the Roth IRA?

A tiny bit of background.. I am 30, my wife is 27.. We just bought a house 8 months ago.. Both have 'above average' jobs and salaries. Our company just merged and our 6% 401K matching just got reduced to 3%.. So the other 4% each we put in is going to be alloted to somewhere else.

Any suggestions are much appreciated.

[Valuist]

I got one in 1998. Paid taxes over the next 4 years on it. But now I'm done paying taxes on the IRA. Forever. Or at least until they change the tax laws re: IRAs. Fortunately I converted mine before all the stock market insanity of 1999 and 2000.

[cj]

I would say the negatives are non-existent. Unless you can't live without that extra couple hundred bucks you will save in taxes each year with a traditional IRA, ROTH is the way to go. If you need the tax break that bad, you probably couldn't afford to invest in an IRA anyway.

Like anything else though, invest wisely! And remember, you haven't lost a penny until you sell! I know I'm reaping the benefits of those who bailed the last couple years.

[so.cal.fan]

SQ764

Check out this website, I think you'll find the answers you are looking for.

http://www.suzeorman.com/updates/earnedit_updates_future_suze.asp