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URL:  http://boards.fool.com/generally-i-suggest-a-balanced-approach-get-30290055.aspx

Subject:  Re: Roth 401k vs. Traditional 401k Date:  9/29/2012  8:21 AM
Author:  2gifts Number:  70992 of 78168

Generally, I suggest a balanced approach. Get some retirement savings in traditional accounts, some in Roth accounts, and some in ordinary accounts (with no special retirement tax breaks). That let's you pick and choose what works best for you each year. If you only have one type of account when you get to retirement, you might get lucky and have picked the right one, but you might not. With a balanced approach, you might not make what is, in hindsight, the best choice, but you are also unlikely to have made the worst choice either.


I just did a quick look, and we have about 55% of our retirement savings currently in taxable accounts, 2% in Roth IRAs (we contributed any time I wasn't working and we were eligible, which wasn't much) and 43% in traditional IRAs and 401ks, so I think we do have a reasonably balanced approach.

We are within 5 years of retirement. I actually haven't checked yet, but if I get any sort of retirement benefits from the new company, it might make sense for me to work at least 5 years, and I would do that, but we are fairly close to that milestone.

Our retirement assets noted above are about 68%