I came across an article, which I will endeavour to find again, that argued against Traditional IRA's and even 401K's(except in the case of the rapidly disappearing company matching funds). The main point of the article was that the BIG assumption with T-IRAs and 401Ks, is that we will be paying LESS taxes when we retire and start withdrawing from them, therefore, saving us from paying higher taxes overall. Yet, in view of the massive debt this country has accumulated, exacerbated by the wave of bailouts and budget deficits recently seen, can we realistically expect to pay less taxes in the future on a lump on money we have accumulated with taxes deffered on it? Many people, myself included expect to have to work to make ends meet during retriement. It is hard to see how taxes will go down in the future for anyone. Isn't it better to pay the taxes now on your retirement monies and watch it grow knowing that it will be all yours?If we also add in, the fact that many of us have recently seen our taxable incomes greatly reduced or eliminated in some cases.ANDThe balance of your Tax deferred investments have generally tanked along with the stock market. This implies they will hopefully grow again in a bull mkt increasing the taxable amount when the time comes to withdraw for retirement.Are these points sufficient to justify a massive conversion of T-IRA's to Roth IRAs? Isn't this something EVERYONE should take a look at right now?For my part, I did it last late year. My gross income was a mere 27K, the net sum of my IRA+401k was just 13K after the 30%+ beatting they took in 2009. I also got married that year and expect to have significant medical expense deductions for insurance premiums and expenses and job seeking expenses. I'm only 43 so I've go a ways to go before MRDs and all that, but I wanted to see what others thought of this...If you have the article I'm refering to, please link it.Thanks,JC
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra