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I'm looking for other people's thoughts on this question. My 403(b) at Vanguard and an IRA invested in Dell have done quite well, and that raises a new issue. Growth is now almost entirely driven by market returns on my balance, and new investment is only a small contributor. I'm considering not funding a Roth IRA but wondering if I've missed something. Of course I'll continue to take my employer's 2:1 match on the 403(b), but I see less benefit in a further reduction in current cash flow to fund a Roth.

When I do the numbers, assuming I'm not going to touch any retirement account until age 55 (18 years) and assuming a real rate of return on Vanguard's Index 500 of 8% or more, the 403(b) alone gives me an annual inflation-adjusted income forever of triple what I now make. What's the reason, if any, for funding a Roth too? Has anyone else considered this question and determined a balance or other threshold at which it no longer makes sense to add new money to their retirement portfolio?
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