Re: Contributing to a Roth IRA
[Re: robert.d12]
#7166094
02/02/21 11:00 AM
02/02/21 11:00 AM
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Joined: Mar 2018
Posts: 2,578 Missouri
HayDay
trapper
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trapper
Joined: Mar 2018
Posts: 2,578
Missouri
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I also have an IRA and if it were up to me, these IRA's would replace almost all pensions, retirement plans, etc. that are kept on employee's behalf. The IRA is yours and stays with you. I worked at several places when I was younger, each had a retirement plan, but those companies no longer exist. If I was ever vested in any of those plans, it doesn't matter now. Somebody else got that money, not me. So promises of a retirement plan often fail to materialize.
I have an IRA, but is not a Roth type. Mine was funded pre-tax, and gets taxed as it is withdrawn. I've never done the math, nor seen the math as to which would be the best choice for someone starting out from scratch. Since it is not taxed going in, with my type, there is more to invest early on, and will grow at a faster rate. Downside is you don't know what the tax rate will be coming out.......but what we also don't know is tax policy when it comes time to start pulling money out of a Roth. Promises are made but then promises get broken. All the noise lately about taxing the unrealized gains has me concerned.
Easy to vote your way into socialism, but impossible to vote your way out of it.
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Re: Contributing to a Roth IRA
[Re: robert.d12]
#7166098
02/02/21 11:02 AM
02/02/21 11:02 AM
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Joined: Mar 2018
Posts: 2,578 Missouri
HayDay
trapper
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trapper
Joined: Mar 2018
Posts: 2,578
Missouri
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To clarify, I'm 100% in favor of IRA's, just never seen the math as to which is the best option......Roth or the other.
Easy to vote your way into socialism, but impossible to vote your way out of it.
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Re: Contributing to a Roth IRA
[Re: robert.d12]
#7166128
02/02/21 11:24 AM
02/02/21 11:24 AM
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Joined: Mar 2018
Posts: 2,578 Missouri
HayDay
trapper
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trapper
Joined: Mar 2018
Posts: 2,578
Missouri
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OK, have now done a quick and dirty version of the math. Lo and behold, monthly check at the end is the same....almost to the penny. Not what I expected.
Easy to vote your way into socialism, but impossible to vote your way out of it.
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Re: Contributing to a Roth IRA
[Re: white17]
#7166224
02/02/21 12:56 PM
02/02/21 12:56 PM
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Joined: Feb 2014
Posts: 25,697 nm
adam m
trapper
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trapper
Joined: Feb 2014
Posts: 25,697
nm
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If I was just starting out saving for retirement by using an IRA, I am pretty sure I would go the Roth route. There is absolutely no way that I can even imagine that tax rates will be lower 40 years from now than they are currently.
I agree with HayDay that the prospect of taxing unrealized gains is frightening ! If you want to see a market correction, just propose a tax like that ! Would you use a conservative, high risk, or low risk approach? I'm leaning on a moderate approach. I like diversified portfolios but the low risk high yield portfolio sounds interesting.
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Re: Contributing to a Roth IRA
[Re: adam m]
#7166263
02/02/21 01:51 PM
02/02/21 01:51 PM
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Joined: Mar 2007
Posts: 35,544 McGrath, AK
white17
"General (Mr.Sunshine) Washington"
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"General (Mr.Sunshine) Washington"
Joined: Mar 2007
Posts: 35,544
McGrath, AK
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If I was just starting out saving for retirement by using an IRA, I am pretty sure I would go the Roth route. There is absolutely no way that I can even imagine that tax rates will be lower 40 years from now than they are currently.
I agree with HayDay that the prospect of taxing unrealized gains is frightening ! If you want to see a market correction, just propose a tax like that ! Would you use a conservative, high risk, or low risk approach? I'm leaning on a moderate approach. I like diversified portfolios but the low risk high yield portfolio sounds interesting. If I was 19 years old I would go with a higher risk level. I might buy some SPY, some QQQ and some IWM. Just be aware of some overlap between SPY and QQQ
Mean As Nails
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Re: Contributing to a Roth IRA
[Re: robert.d12]
#7166415
02/02/21 03:54 PM
02/02/21 03:54 PM
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Joined: Oct 2015
Posts: 2,531 Fingerlakes New York
robert.d12
OP
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OP
trapper
Joined: Oct 2015
Posts: 2,531
Fingerlakes New York
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You guys are awesome, thanks for all the help everyone!
The beauty of the second amendment is it wont be needed until they try to take it. -Thomas Jefferson
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