Share this Page URL

Chapter 5. Developing Your Retirement Pl... > Where Else Can You Save for Your Ret... - Pg. 63

Developing Your Retirement Plan 63 If you use both approaches, you will note that our worksheets are more conservative than the soft- ware. In other words, if you follow the plan based on the worksheets, you'll probably end up with more money in retirement than you'll need. That certainly beats the alternative. Our Advice If Roth IRAs weren't good enough, in 2006, you'll be able to direct some or all of your future pre-tax 401(k) contributions to a new "Roth 401(k) Account." With a Roth 401(k) Account you make after-tax contributions (instead of pre-tax), your account grows tax-deferred, and after five years and age 59½, your money comes out tax-free. Yup, we said tax-free, not tax-deferred, TAX-FREE! Where Else Can You Save for Your Retirement? Let's say for a moment that you crunch your numbers using these worksheets. You determine that you need to save more, but you're already saving the maximum allowed in your 401(k). What do you do? Figure 5.15 lists a few other places you can save.