As Americans ponder the shock of war in Iraq, the cyclone in Myanmar, the earthquake in China, ever-rising gas, food, and insurance prices, and a slumping economy...

...knowing what/when/where/why/how to invest really seems just a second thought.

Just WHAT about putting that penny away for a rainy day?

Retirement is one of the most important investments, and the "Roth IRA" (Individual Retirement Account) provides a safe, tax-free haven for retirement available to Americans.  It was named after fiscal conservative Delaware Senator William Victor "Bill" Roth Jr., who died in 2003.

The Roth IRA yields tax-free results with annual investment.  At age 59½ , an American can withdraw his/her investment TAX-FREE.  That's right!  Uncle Sam CANNOT and WILL NOT take a penny.

A recent retirement confidence survey by the Employee Benefit Research Institute reveals:

• 84% of workers are confident that they will have enough money to cover basic expenses in retirement.

• 75% believe they will be able to manage their money well enough not to outlive their funds.

• less than one-third of those surveyed actually calculated how much they will need.

• 26% of younger workers, and 33% of those aged 40-59 actually did the math.

• 23% of those aged 40 to 59, and 17% of those over 60 said they have saved $100,000 or more for retirement.

• 13% of those aged 40 to 59, and 11% of those over 60 have saved NOTHING for retirement.

For the American first walking down that long and wide avenue of retirement investments, the path is intimidating because the route is unknown:  stocks?  bonds? certificate of deposit (CD)?  IRA?

One of them?

Some of them?

All of them?

Many banks encourage customers to invest in certificates of deposit.  Such CD's lack liquidity, and there is a penalty for withdrawal before maturity, an ill-timed action heavily seasoned with guilt by comparatively well-timed disparaging looks from bank employees.

For high rollers:  a cap on CD's does exist at $100,000.  Translation:  if you want five large CD's, start considering five separate accounts at five different banks.

With the Roth IRA, however, $5,000 is the 2008 investment contribution limit for a single investor under 50 years of age.  For investors over 60, the limit is $6,000 annually.  That investment gains interest in securities, common stocks, or mutual funds.  The funds can be used individually or jointly to purchase a home.  This is a timely issue because America is still swimming in circles on its back in the wake of the foreclosure crisis caused by sub-prime interest rates on homes.

Roth IRA funds can be withdrawn with no penalty when you reach at least 59½ years old if your IRA is at least five years old.  Roth IRA's also allow you to make contributions through traditional 401(k) plans that are primarily offered at work.  This is known as the Roth 401(k).

With the Roth 401(k), employers can contribute to their employees' retirement with post-tax dollars.  The employee contribution cannot exceed $15,500 for the 2008 tax year.  The "employer matching funds" are not included in the $15,500 "elective deferral cap," but are considered for the maximum section 415 limit, which is $46,000.  A couple can also jointly invest from their 401(k), with a full contribution through a spouse's 401(k).Â

Tax-free retirement savings accounts are ideal for young investors.  According to a Kiplinger Business column, "If a 25 year-old contributes $5,000 each year until she retires and makes an average annual return of 8% on her investment, she'll have $1.4 million saved by the time she retires at age 65.  And the money is all hers--she won't have to give the IRS a cent of it if she waits until retirement to cash out."

In a constantly changing world full of uncertainty...

....travel that long and wide, daunting avenue of retirement investments with the Roth IRA as a clearly readable map in your steadier, more confident hands.