Re: Why would I want to open an IRA?
(Not trying to be a smartass here just make a point).
Your 60-year old self will need money too, and you probably won't want to work anymore by that point in your life. I also believe you're misunderstanding the tax issue, you only pay taxes on the income you pull out at the end, not income generated (at least I'm 99.9998% certain).
The key is getting the money into your longterm savings as soon as you can, the sooner it gets there the more money you'll make. $10k a year for 25 years at 8% will give you almost a million with only about 1/4 of that being money you actually "spent" on your investment. Not a bad deal.
J
EDITED TO ADD: For comparison sake, $10k/year x 35 years @ 8% would give you about 2 million. See what I mean about starting as soon as you can? Also, you can usually do better than 8% which just makes the piles of money bigger.
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