I think that I am finally approaching a point in my life where I can start saving and investing in the market. Instead of investing in something like the stock market, I want to start a ROTH IRA. I knew that this form of investing in mutual funds and national and international portfolios made sense; I just didn’t realize how much sense it actually made. Check it out:

1. You invest after-tax money. All of the money you withdraw is tax free. You never have to pay taxes on the interest!
2. You can pull the money out early if you need to without being taxed as long as you’ve had the account for five years.
3. This year, you can invest $4,000, and you have until tax day in April to consider your money a 2007 investment. In 2008, you can invest $5,000.
4. The IRAs and 401(k)s require you to start withdrawing money at age 70½. You’re never required to withdraw this money, so if you don’t need it, you can keep doing tax-free investing.
5. When you die, your heirs don’t have to pay ANY taxes on what they inherit from your Roth.

Seems like a logical savings plan to me!