New Way To Save For Retirement..(pay attention 30-somethings)

http://abclocal.go.com/kabc/story?section=consumer&id=3655197


New Way To Save For Retirement By Ric Romero

CONSUMER NEWS - There is a new way to save for retirement starting on January 1st. It combines a 401-K plan offered by companies with a Roth IRA that geared for individuals. Consumer specialist Ric Romero explains how this new plan could help you save.

Ever since companies started phasing out pension plans, retirement saving has gotten much more complicated for many employees. Now, a new and very different 401-K plan is about to begin. But, you need to know how it works, before you sign up.
Thirty-four-year-old Trip Leonard is trying to save wisely for his family's future. He says, "We have 401-Ks, we have some traditional IRAs and some taxable accounts, all in mutual funds."

Beginning January 1st, many people will have a new option. It's the Roth 401-K. With traditional 401-K plans, your initial investment and earnings are tax-free until you take your money out. The Roth 401-K is just the opposite.

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So, how does it all add up? If a 30-year-old contributes $10,000 a year, and gets an average return of 7-percent for the next 35-years, at age 65 he'll have about one and a half million dollars.

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So better start putting $833.33 PER MONTH for the next 35 YEARS.. Y'all can do that easily, right??right??..You won;t be needing that "extra" money for silly stuff like buying a house, or paying for medical insurance or paying off college loans..or stupid stuff like that, will you:eyes:

and paid 15% (I believe) Capital Gains income tax, you can roll it over to a Roth 401-K and never pay any more taxes on it. :grr:

10K is 1/3 of my annual gross salary--and that's from working two full-time jobs. There's no freaking way I can put that into a retirement plan every year. :crazy:

The end of the year tv spots always crack me up too.. The ones where their "experts" remind us that it's not too late to "cut down on our taxes"...by opening up this or that..with say..$10K we might have laying around..or by making a bequest of 10-20K to our alma mater ..

These pampered freaks just assume that everyone has plenty of cash to live on, and our biggest problem is lessening our taxes..

Most people are worried about how to pay their damned electric bill on time..:grr:

And even doing that has taken me some time. I'm 29. I'm sure I'll be able to save more somebody, but that's all I can do now. I'll have to put some hope into my inheritance, where my prospects are a little brighter, I think.

now i think about all those folk being laid off at gm.