STYLETHREAD -- LET'S TALK SHOP!

I read up a bit on Trad. vs Roth IRAs when I was looking at opening one a few years ago.  Suze Orman has some very good basic information about them, but I'll share what I know:

Roth IRAs:  The contributions you make to your Roth IRA are taxed now.  But, when you take your money out when you've retired (I think you have to be 58 or 60 not to face any tax penalties) you get your money without paying any tax on it, since you've already paid it.  With a Roth IRA, you can also take money out before you retire to put a down payment on a house and for education. 

Traditional IRAs:  Your money isn't taxed now, but it's taxed when you take the money out when you retire.  You cannot take the money out to pay for education or a down payment.

Both Roth and Traditional IRAs allow you to set up a direct deposit. 

I went with a Roth IRA and I'm glad I did.  On one hand, it kinda stinks because I'm paying taxes on money that I just don't ever see.  But on the other hand, taxes are bound to go up between now and when I'm in my 60s, so it's probably for the best that I just pay taxes on them now and not have to worry about it in my golden years. 

I originally set up my Roth IRA through HR Block and I was pretty dissatisfied with my financial advisor there, so I switched to Wachovia and I'm very happy I did so. 

If you want to do some more reading on the subject, check out Suze Orman.  She has a ton of books and also has an advice column on MSN.com.  Also, The Automatic Millionaire talks about the pros and cons of the Trad. vs Roth IRAs and how to go about setting them up and setting up the direct deposit.

Also, for what it's worth, there are some limits on IRAs.  For example, if you make over $100,000 on your own or $150,000 as a couple, you're ineligible (I believe those are the correct figures).  There's also some limitation if you have a 401k, you might be ineligible to contribute.  A few years ago, the contribution limit was $3,000 per year and now that has changed to $4,000 per year.  I believe by 2008 or so, the contibution limit will be $5,000 per year (again, not 100% sure on that, but I believe its around then.) 

I've been maxing mine out since I started working when I was 23 and I'm amazed at what I have saved in those few years.  And since it's direct deposit, I never see the money and never even have a chance to miss it.   It's pretty damn cool.