No. of Recommendations: 1
If I start putting the maximum amount in at my age, I think I figured I could have around $400K when I retire. That is not going to do anything 30 years from now!

How are you computing this $400K? If you put $5k a year into a Roth and your investment within that Roth earns an average of 7% a year for 40 years, you'll have $1,073,048 in 40 years. At 30 years it would be about $510,000. And it's tax free. The limitation on how much you would have is a function of what you invest in and how will they do. If your investment average what the market has done over history (bout 10%), it would be worth $2,439,000 at 40 years or $909,000 at 30 years.

The Roth should be in addition to other things, such as an employer 401k or a taxable investment account. A 401k lets you contribute up to $15K a year now and the contribution is tax deductible. This will grow your portfolio faster and larger but is all taxable when withdrawn.

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