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URL:  http://boards.fool.com/greetings-vsaffrin-and-welcome-ltltim-10139469.aspx

Subject:  Re: Honest IRA/Roth Comparisons Date:  3/27/1998  9:32 AM
Author:  TMFPixy Number:  2422 of 76384

Greetings, Vsaffrin, and welcome.

<<I'm mystified about the Roth hubbub, but maybe I'm just missing the boat.
When I try to compare a traditional IRA to a Roth, the Roth ALWAYS comes out behind. That's because I insist on comparing apples to apples and equate a $2K pre-tax contribution to a traditional IRA with a $1440 Roth contribution (taking account of the fact that I will need to pay an additional $560 of taxes @28% on the now-taxable money). The Roth never recovers from this lower input, regardless of assumed investment returns or time horizons. The larger pie earns more money, and wins even though I have to pay taxes when withdrawing money...there's more than 28% more money at the end.
Comparing the returns on $2K contributions to both plans just isn't honest (and therefore not Foolish).
So, other than inheritance differences, why should I even consider a Roth?>>

I made a post on these issues on 1/31/98. It was put into a readable format, and it's worth your consideration and time. You can find it at:

http://boards.fool.com/Registered/Message.asp?id=1040013000441002&sort=postdate

Take a look. Then if you have further questions, c'mon back and ask.

Regards....Pixy
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