Quote:
Originally Posted by kittygilchrist
Stepping back in this great thread for a minute...
IF you are thinking of deferred tax investments like an IRA. For me the answer is I never made so risky and likely to fail as I did in my 20's. But I am a chicken and that's no good as a role model for you.
Ask: am I making more income now that I expect to make at retirement age? How would my single tax rate compare if I am married when I use the $$IRA?
consider: Kitty would have done better to pay the taxes while my tax rate was near 0, even if people with a tonnage of $$ advised me to defer taxes. They didn't know what it's like to make it close to the bone and pay nothing or almost nothing in taxes. So getting an advisor who has no angle to take you $$ might be nearly impossible were the grace of God with, so happily, he is.
Happy New Year, Josh,
Kitty and Emma and Raul
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I can't tell you how hard it was for me to convey that to people when I was young and not making any money. We had a choice to be in the Stock Saving Program (we paid our taxes then) or a 401K (defer the taxes). I chose to pay the taxes then. I was young and single then, and I knew I would be making much more money when I was ready to take it out! I'm now married. We both did very well in our corporations and have an awesome pension program. Thus, putting us in a higher income tax bracket.
Of course I eventually had to buy into the 401K... But when I take it out. The SSP will net me more than the 401K!
You are Spot On! Kitty!