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mtcunnin wrote,

Also, unrelated question, the Roth vs. Traditional IRA calculators use tax rate at retirement as a parameter. How the heck do I know what my tax rate will be at retirement??

Most people are in a lower tax bracket when they retire, so a Roth IRA is a bad idea for "most" people. You should only invest in a Roth IRA instead of a deductible IRA if you believe you'll be in a higher tax bracket in retirement.

However, since you're becoming Foolish at such a young age there is a good chance you'll be in a higher tax bracket when you retire if you decide to work until age 55 or 60. One way to manage your tax bracket in retirement is to retire early. I looked at what I'd be paying in taxes at age 65 and decided to retire 5 years ago at age 38.

Fool on!


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