Re: Why a Roth IRA?
One advantage of contributing some of your retirement money to a Roth is that you are hedging your bet on taxes. Some people predict that tax rates will have to rise over the next 20 or 30 years (due to the federal deficit, etc.). If that's true, it will be better to pay taxes on the money now, and withdraw your earnings tax-free at retirement.
A 2nd advantage is that IRAs give you a much broader choice of investments than your company's 401k plan.
A 3rd advantage is that you can withdraw your contributions at any time. (This can be a bad thing though, since you really shouldn't tap into your retirement funds except in true emergencies.)
Having said that, I think people are a little too crazed about the Roth. Funding your Roth is not nearly as easy as funding your 401k since you (and not your employer) does the work. Also the guess on whether taxes will be higher in the future is purely a guess. They could be the same or they could be lower, who knows. Also for someone who is in their peak earning years, paying taxes later will probably be a better choice.
If you're putting as much as you can in your 401k, and are invested in a diversified portfolio, go with it and don't overstress about it.
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