| There are many ways that you can save money | | | | dollars, but don't fret too much. The distributions when |
| these days for your golden years. Each has its | | | | you reach the age of 70 are not taxed. This |
| beneficial and negative aspects. The Roth IRA is a | | | | effectively means that you can grow money that is in |
| particularly popular form of individual retirement | | | | the Roth through investments and have no tax liability. |
| account these days, but one has to wonder about its | | | | That is a pretty amazing deal when you think about it. |
| long term prospects. | | | | Ah, but what about the future? There are many who |
| The federal government is often given grief over its | | | | wonder about the long term future of the Roth as it |
| apparent inability to make any long term plans since | | | | pertains to the tax free distributions. The problem is |
| most politicians are only focused on the next election. | | | | simple. The government is going to need money in the |
| Retirement is one subject where this hasn't been the | | | | future in a bad way. 2010 is the first year there is no |
| case. The political parties have been united in trying to | | | | social security surplus. The annual budget deficit is now |
| come up with platforms that will get Americans to | | | | over a trillion dollars and will be getting worse. Future |
| actually plan for retirement by saving money, a novel | | | | unfunded liabilities [Medicare, etc.] are estimated to be |
| concept to most of us! | | | | in excess of sixty trillion dollars. That's a lot of debt and |
| The Roth IRA is unique among retirement planning | | | | the government is going to have to pay it or face an |
| options because it runs counter to the others on the | | | | economic disaster. The total money in retirement funds |
| issue of taxes. Most options like 401ks and traditional | | | | is the biggest "asset" we have in this country now. |
| IRAs allow you to save money with pre-tax dollars. | | | | You can expect it to be taxed to and fro as the |
| The downside is you have to pay income tax when | | | | government needs to raise money. In such a scenario, |
| the money starts being distributed in your 70's. The | | | | it is hard to image Roth IRA distributions remaining |
| Roth works in just the opposite manner. You get no | | | | untaxed. |
| tax break up front. You must fund it with after tax | | | | |