Quote:
Originally Posted by LeRoySmith
When ROTH came around I wish they'd have explained them a little better/different. It was put to us that your tax situation at the time vs when you withdraw was the primary consideration for traditional vs ROTH. Looking back I wish someone would have asked me if I'd rather pay tax on the seed or the harvest. The tax rate means nothing when you add in years of compound earnings. I'd happily go back and pay tax at the time of earning vs paying it on all these years of growth. Still a pretty sweet deal.
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Sometimes, our lack of comprehension is clouded by the uncertainty of the future.
The future is always uncertain. The concept of retirement and playing a villages camper with a bazillion activities was unimaginable to me even up to as little as 5 years ago, even after we bought the house and we were still working.
At one point in my life because i worked in a dangerous industry and knew college classmates who had perished, I didn't think i would live past 30 years old if i continued
The battle for your money is constant:
1) the government taking taxes
2) the investment industry always hawking future spending requiring millions, hoping for investment dollars starting at birth (college funds, then downpayment funds, then retirement funds)
3) the leisure and entertainment industries wanting you to spend money today, especially on credit.
All that while trying to keep your job and trying to get promoted or improve your income.
I have met people who were forced to retire and had no idea what to do or where to live.
401K / IRA for the successful is fine on top of SS or other pension. If you don't need the extra money, just keep on investing it for income in a taxable account. You never know when you will need the money to continue to live independently.
good luck. . we couldn't invest in a ROTH due to income limitations as well as employer offerings were limited for 401ks. NTW, my mom at 97 has exhausted her IRA moneys, so now all income is essentially tax free . . .