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Author: Watty56 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76098  
Subject: Re: Roth VS Traditional Date: 7/8/2004 1:01 PM
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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.

Greg
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