UnThreaded | Threaded | Whole Thread (35) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Re: Roth IRA Contriubtions & Conversions Date: 2/12/1998 6:59 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Ingrid,

<<I finally decided that since you start with more in the Roth IRA (to be equivalent that is), you'll get more $ growth for the same % growth there -- obvious I guess, but I wasn't thinking about it right. So, that effect cancels out the fact that you take more of the principal (is that the right word for the contents of the IRA?) with every withdrawal. But it still doesn't seem like it should match exactly, no matter what the % growth rate. I'm confused! (But I know what I want to do with my money, so you don't have to try to enlighten me -- I may just be a little too dense for this one :) >>

With the traditional deductible IRA, you pay the tax later. With the Roth, you pay the tax today. Therefore, if all else is equal, the results have to be the same over the long run.

Regards….Pixy
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (35) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Tax Strategies

TMFPMarti-Feeling Good
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement