while you're likely right, keep in mind, you're comparing your marginal rate now

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Jan 18, 2020
11:26:07am

Pedant Walk-on

while you're likely right, keep in mind, you're comparing your marginal rate now

to your rate after you retire. Not your top income years.

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Pedant

Previous username: BertoChavez
New username: SalmonOfCapistrano
Bio page: Pedant
Joined: Feb 1, 2012
Last login: Jul 31, 2021
Total posts: 0 (0 FO)

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Messages

Author

Time

I'm about to dump a bunch of cash into a Roth IRA. Someone stop me if this is

vegasnative

1/18/20 11:18am

I endorse this plan

CBaass

1/18/20 11:18am

haha thanks. It is just so hard to find straight forward information in this

vegasnative

1/18/20 11:20am

As long as this doesn't mean you are missing out on a 401k match, this is smart.

Pedant

1/18/20 11:20am

Kinda work for myself (family firm) so no 401k, let alone any matching.

vegasnative

1/18/20 11:21am

Then IRA is correct choice. Roth? Also correct choice since it sounds like

Pedant

1/18/20 11:23am

This is what I am thinking.

vegasnative

1/18/20 11:24am

What is your current tax rate and what do you expect it to be when you retire? Roth is generally a fine option but in

Pimpin4Paradise

1/18/20 11:22am

My tax rate should be hire in the future (knock on wood), so that is why I am

vegasnative

1/18/20 11:24am

Not just in the future, but specifically in retirement.

Pimpin4Paradise

1/18/20 11:25am

Most people will have a lower tax bracket at retirement

Baron

1/18/20 11:27am

compared to their top earning years, yes. Not necessarily when you are just

Pedant

1/18/20 11:28am

and confirmed on profile that he's a lawyer

Pedant

1/18/20 11:28am

I don't know how a firm has anything to do with it.

Baron

1/18/20 11:35am

"firm" often means lawyer. Lawyers often retire quite wealthy.

Pedant

1/18/20 11:37am

Hahaha. Not true. Nice people still think that.

Baron

1/18/20 11:48am

Right. I anticipate my rate to be substantially lower in retirement. For that reason I do primarily traditional

Pimpin4Paradise

1/18/20 11:29am

while you're likely right, keep in mind, you're comparing your marginal rate now

Pedant

1/18/20 11:26am

Good point. I anticipate it being higher in retirement. I also feel like

vegasnative

1/18/20 11:33am

Politically it is likely to be lower. Tax rates have been dropping.

Baron

1/18/20 11:36am

Maybe I'm a pessimist, but I see the future being more bernie and less trump.

vegasnative

1/18/20 11:39am

It's a good plan

nut-e-professor

1/18/20 11:47am

This.👍🏼

BringYourUltimate

1/18/20 12:03pm

Do it. Stay disciplined and make monthly contributions.

AeroCoug

1/18/20 12:13pm

You're talking about withdrawing from the taxable accounts right? Can't withdraw

vegasnative

1/18/20 12:14pm

The principal is tax free on a roth at anytime. The growth has to wait till 59.5

RexIdaCoug

1/18/20 12:24pm

Roth Rules...

AeroCoug

1/18/20 12:33pm

Maxing out your IRA and/or 401k is always a good move

therock

1/18/20 1:58pm

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