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Subject:  Re: Roth VS Traditional Date:  7/8/2004  1:01 PM
Author:  Watty56 Number:  41512 of 88775

In very rough figures something like the first $40,000 or so of retirement income for a couple will be taxed at relatively low rates after deductions are accounted for. If you think that the safe withdrawal rate is 4% then you will need to have over $1,000,000 (in current dollars )in taxable accounts when you retire to have to start worrying about being taxed highly.

For most people there is a significant risk that they will end up withdrawing the Roth funds when they are in a low tax bracket anyway so unless you are a very high income individual with lots of assets then it is safer to go with a traditional IRA or 401k for the bulk of your retirement investing.

I would personally prefer to retire earlier on a comfortable income rather than waiting and retiring later(and much richer)so the Roth is less attractive to me.


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