On Wednesday afternoon after trading was finished for the day I executed a trade to buy mutual funds, and reached the maximum amount of Roth IRA savings in a year.
The yearly limit is $5000, if you did not know this, or know what a Roth IRA is close out of your internet explorer and go to Vanguard, or Charles Schwab or Bear Stearns (ok not Bear Stearns heh) and immediately go and open one.
A Roth IRA in my opinion is the best investment (retirement) vehicle out there. You pay tax on the money that you contribute now, and never pay tax on the earnings when you withdraw from it many many years from now.
Finding $5000 after tax dollars to drop into an account which you cannot get to for about 30 years is a hard thing to do. That being said, if you did this, and got 8% return for 30 years, you would have $46,586.37. All hail the power of compounding interest!
Moral of the story: Starting to save even a little early helps you exponentially in the long run.
