The Roth IRA will not provide you with a current tax deduction, but your account will still grow tax deferred. Upon retirement, you will be able to withdraw your account completely tax-free. Your family tax bill will be slightly higher than if you used a traditional IRA, but you'll end up with more money at retirement since your tax bill has already been paid. My wife and I are expecting our first child in December. We are both 29.
Life insurance can be the perfect tool to protect a young family in the event of a death.
Because you are just starting your family, I'd suggest you use a rule of thumb of seven times your earnings plus whatever mortgage you have. Life insurance is incredibly cheap at your age and it wouldn't hurt to have more than that amount. I've never seen anyone die with too much life insurance. Over the past few weeks, I've responded to questions about living trusts, wills, estate planning and the like. I am amazed at the number of letters that resulted from my responses.