FINANCE TIP: WHERE TO SPLURGE EXTRA MONEY

I can think of so many things….new pair of shoes, leather watch, and down payment to a new BMW (I wish!) But we opted to invest additional $$$ in Roth IRA.  Yes, the check was mailed yesterday. Bye Bye baby for the virtual money that we don't enjoy today.

For today, I would like to share with you articles I enjoy related to Roth IRA. Hopefully you'll understand why this is important to me. Because we are young and still have years before the 59.5 year mark, it just make sense for me to invest in the stock market where I know I will have the highest rate of return when that time comes that  I have to cash it out. I haven’t decided yet on the portfolio but I am strongly leaning towards to investing at Walmart (NYSE:WMT) since I go there every weekend. But, we’ll see

Why You Need a Roth IRA

Article by Erin Burt, (Kiplinger, 3/9/06, updated 2008)

Quotes:
One of the smartest money moves a young person can make is to invest in a Roth IRA.

When you're just getting started investing, the Roth should be your first stop -- even before you open a regular, taxable account, or contribute to a workplace retirement-savings plan. The only exception is if your employer offers a match on your 401(k) contributions.

Pay taxes now, spend more later

(Article by Bill Donoghue (MarketWatch, 12/11/07)

Quotes:
You will never retire on the money you save for retirement; you will retire on the money you make on the money you save for retirement.

To make money on your retirement investments, get as much as you can into a Roth IRA as soon as you can. All of your profits will be free from income taxes after you hold them in your Roth IRA at least five years.

Roth IRAs Save Dessert for Last

Article by Martha M. Hamilton (Washington Post, 12/31/06)

Quote:
"I think people of all ages should be thinking about Roth IRAs, especially those who are young," Fahlund said. Otherwise, if you put pretax money into a savings plan at age 20 and leave it in until age 70 1/2 when you are required to begin withdrawals, "you have been growing taxes for Uncle Sam" for 50 years.

Why the Roth Rules

Article by Robert Brokamp (The Motley Fool, 4/16/03)

Quote:
If you're confused about which type of retirement account to choose, here's the quick and easy (and probably smartest) strategy: Put your money in a Roth IRA.

I started investing  in Roth IRA in 2004. The market is down right now, so its worth nothing...but 20 years from now...I'm sure it will be something!