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Subject:  Re: Roth Beware-Substantial Savings Date:  1/13/1998  5:46 PM
Author:  rickisme Number:  1259 of 78663

bellgarde wrote: Hello there - it's Tuesday!. Any chance that you'll be able to post the numbers. Certainly like to see them, perhaps even some of your guesstimates on tax rates in future years.

I did run some numbers and I also visited some of the web sites that have these Roth calculators. I found some of them not to be reliable on the calculations, although some were. A mixed bag. One needs to be careful. Keep in mind that the assumptions that I am making and for this scenario to play out as I outline, must actually occur exactly as outlined. Of course no one really knows how Roth will fare in a few years, nor does anyone know whether tax rates will be lower (the basis of my assumption). Although I have not finished all my research in this area, this is one specific possible outcome (of infinitely many) of Roth and the results astound me. I double checked the number crunching but am open to criticism if I'm in error.

OK, Fanny Fool makes $50,000 TAXABLE INCOME before her IRA contribution. She is in say the 28% (co