>>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 payYep, 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 statementThat'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 shownRight, 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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