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URL:  http://boards.fool.com/ray-i-have-to-disagree-also-you-say-ltltyou-10141191.aspx

Subject:  Re: Honest IRA/Roth Comparisons Date:  3/30/1998  1:34 AM
Author:  Pooksterish Number:  2491 of 76384

Ray,

I have to disagree also. You say:

<<You _are_ missing the boat. Most people who can afford to contribute to an IRA cannot make
deductible contributions. It's that simple. If you are covered by any kind of a retirement account by
an employer, you can't deduct the money you put into your IRA. And if you are making so much
money that you can afford to put away $2000 (or $4000) per year, your skills are probably in such
demand that employers offer benefits like a retirement plan.
We mostly dismiss a deductible IRA for pretty much the same reason we don't discuss the 10%
long term capital gains rate. The only people it applies to are those people for whom it doesn't
matter, because they can't afford to take advantage of it.>>

I know lots of people who make very little money but put $2000 per year PLUS into retirement savings, and take advantage of the deductability. I for one make about $26000 per year and my retirement savings are $2000 IRA, $1000 SEP, and about $6000 into a non-IRA investment account, for a total of $9000 per year. I'm not saying I'm average (I'm disciplined about my savings to the nth degree!) but am illustrating the possibilities. And I'm in the 15% tax bracket, taking advantage of all that investing at the 10% capital gains rate! At least for now. When my investments snow ball into big time gains I guess it'll eventually push me into the next tax bracket.

Pooksterish

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