The title of this post is meant to be sarcastic, but I do think their are many people who have lost confidence in the idea that investing in a 401k or a Roth IRA is a fool-proof way to reach your retirement goals. While it may not be fool proof or guarantee you the retirement lifestyle of your dreams, I really think that a 401k and/or Roth IRA are essential tools for reaching your retirement goals, whatever they may be.
While a Roth IRA or a 401k by itself may not get you to your retirement goal in the time frame you want, I think that not having one (or both) would make it much, much harder to reach your magic number.
Here are the Roth IRA and 401k contribution limits for 2009:
2009 401k limits
The maximum contribution limit for a 401k is going up in 2009, to $16,500, up $1000 from the 2008 limit (which was the limit for 2007 as well) of $15,500. If you are 50 years old or older, you can contribute an additional $5,500 in 2009.
2009 Roth IRA limits
The maximum contribution limit for a Roth IRA is not changing in 2009, the max. contribution will remain $5,000. The Roth IRA is supposed to be increased in increments of $500 based on inflation, so it is likely it will go regularly, but apparently it did not go up enough to reach the $500 increment. If you are 50 years old or older, you can contribute an additional $1,000 in 2009, for a total of $6,000.
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