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>>The real question comes down to, do you need income from these accounts to support your retirement, or is this just extra funds.

I was thinking of this as your retirement portfolio. You have this and Social Security and that's it.

>>At age 70-1/2 you will be forced to take distributions. So then you will have to pay

Yep, a point against TIRAs....as I recall at age 71 you have to take 4%-5% or so each year, and by age 80 it's around 8%/year.

That can be a serious issue. If you save just $5K per year in a 401k from age 25 to 60, and the investment grows at 10%, by age 70 you'll have to take out around $200K/year, and by age 80, $300K/year from the account.

>>I do not agree with your flat 30% tax statement

That's true...I just assumed this rate to make the comparison simple. I suppose it would be lower if your income is Social Security and a 4%/year withdrawal from a $700,000 portfolio.

>>So begin by noting that the real value of your TIRA accounts is 30% less than you have shown

Right, that's the key, and why I made the TIRAs start with a somewhat larger value than the All Taxable option.

Maybe it just doesn't matter how you save- Roth or IRA, taxable or 401k, etc. But I'm wondering if there's an ideal distribution of account types to shoot for- if you have 100% of your savings in your 401k, for example, you can never realize a capital loss against your regular income.

If you don't have a goal,(eg 60% IRA, 30% taxable, 10% Roth), it's hard to come up with a savings plan.

Nick
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