No. of Recommendations: 0
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!

intercst

Print the post  

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
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 Glassdoor #1 Company to Work For 2015! 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