Quote:
Originally Posted by Stu from NYC
I agree with you in general but one other consideration.
Down the road either your or your heirs will have to liquidate your portfolio. What will take rates look like than? If taxes go up the roth makes some sense otherwise I would stay and invest all money into IRA.
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liquidation for your heirs, its all unplanned money, or it should be, therefore its all gravy to them, with out without taxes.
With an IRA, its taxed at income rates,
with a Roth its tax free,
with a taxable account, its very low tax or no tax at all,
but remember, all of the accounts are subject to the federal and some states' estate taxes, prior to distribution. . if there isn't enough taxable assets to pay for the estate tax, then the IRA will have to be liquidated to a certain degree. . so a balance between illiquid assets, ie houses, IRAs and taxable accounts is also a planning consideration for the wealthy, especially with a state estate tax
fortunately, not a headache i have to worry about.