The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  Re: Roth IRA Contriubtions & Conversions Date:  2/12/1998  6:59 PM
Author:  TMFPixy Number:  1756 of 88758


<<I finally decided that since you start with more in the Roth IRA (to be equivalent that is), you'll get more $ growth for the same % growth there -- obvious I guess, but I wasn't thinking about it right. So, that effect cancels out the fact that you take more of the principal (is that the right word for the contents of the IRA?) with every withdrawal. But it still doesn't seem like it should match exactly, no matter what the % growth rate. I'm confused! (But I know what I want to do with my money, so you don't have to try to enlighten me -- I may just be a little too dense for this one :) >>

With the traditional deductible IRA, you pay the tax later. With the Roth, you pay the tax today. Therefore, if all else is equal, the results have to be the same over the long run.


Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us