The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/if-youre-young-roth-all-the-way-i-disagree-if-30498104.aspx

Subject:  Re: Roth vs Traditional Date:  1/21/2013  8:20 PM
Author:  MurrayS Number:  71282 of 75794

If you're young, Roth all the way

I disagree. If you're young and your marginal tax rate is below 25%, yes, Roth all the way, but I firmly believe that it's a great idea to defer taxes of 25% or more.

Consider that if, like me, you don't have a pension or other retirement income, that some of your withdrawals from a traditional 401k/IRA will not be taxed at all, some at 10%, some at 15% and so on. Consider a married couple withdrawing $80k from a traditional IRA would pay about 11% effective tax on the withdrawals.

As for the investments in either, I'd choose the same investments in both.

-murray
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us