The Roth IRA May Not Be Your Best Bet For Retirement Savings

The Roth IRA is one of the most popular type of qualified retirement savings plan. But is it really the best you can do when it comes to planning for your retirement?

In order to answer that question as fairly as possible, let's look at this retirement plan from its positive aspects first.

As you've read many time, similar to the traditional IRA, money inside your Roth account grows tax-free. In addition, your earnings can be withdrawn tax-free since contributions to the plan are made on an after-tax basis.

The second benefit that you've read about is you don't have to start withdrawing one penny at the age of 70 1/2 if you don't want to. With a traditional IRA, you are forced to take a distribution (whether you need it or not). Otherwise, the IRS penalizes you very harshly on the required minimum distribution you were expected to take (at the rate of 50%) - on top of the taxes that are owed on the minimum distribution.

Unless I'm missing something, I think that's about it for the big benefits.

Now, in order for you to enjoy the mentioned advantages, you must be eligible to open a Roth IRA account. Under the provisions of the Taxpayer Relief Act of 1997, your annual contributions are limited to $4,000 (for the years 2005-2007). And, in order to be allowed this maximum contribution, your income cannot exceed $150,000 (if you're a couple) or $95,000 (if you're a single income tax filer).

Once your income is more than $160,000 as a married couple and $110,000 as a single filer, you're out of the picture. You are not eligible to participate in the Roth IRA. I don't know if you're thinking what I'm thinking, but with such tight restrictions, how are you to ever accumulate enough money by contributing $4,000 at a time (and that's IF you're qualified).

Even if this money is growing tax-free, I'm not too sure you'll get a comfortable retirement by counting on what's inside your Roth IRA. However, a Self-Directed IRA may be a different story mostly because you can purchase real estate inside your IRA.

The Roth IRA may be a good enough plan for those who are not "in the know". But you are about to discover that there are better alternatives via non-qualified retirement plans.

Under such retirement plans

As one of the foremost experts in financial retirement planning, Doug Andrews, has been shining the light on these alternatives since 2003. Through this website, you will be exposed to some of these alternative strategies which often go against conventional wisdom.

You will find one such example in Home Equity Separation . This proven, yet unconventional strategy may very well be responsible for the biggest chunk of your tax-free spendable retirement income.

In fact, once you read and understand this strategy, depending on your age, you may discover the path into early retirement.

We sincerely hope this will be the case for you.

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