I would definitely contribute to a Roth IRA, if I could do it at 12% tax rate, even if that meant not maxing out your 401k. Also, using the IRA vs. your employer’s Roth 401k might give you more choices and lower expense ratio.
Also, the correct way to use the roth account over a long time horizon of several decades, is to fill it with the highest risk investment, with the potential of very large appreciation.
Famously, Peter Thiel filled it with paypal shares and the position is worth 10’s of billions now.
Finally, during our working life the tax brackt is a function of how much we make, but while in retirement it becomes a function of how large we want (or are able) to live.
Wouldn’t limit my future lifestyle now by saying tax rate will be lower. You should aim to make it larger, instead.
Also, the correct way to use the roth account over a long time horizon of several decades, is to fill it with the highest risk investment, with the potential of very large appreciation.
Famously, Peter Thiel filled it with paypal shares and the position is worth 10’s of billions now.
Finally, during our working life the tax brackt is a function of how much we make, but while in retirement it becomes a function of how large we want (or are able) to live.
Wouldn’t limit my future lifestyle now by saying tax rate will be lower. You should aim to make it larger, instead.
Statistics: Posted by Thesaints — Fri Sep 20, 2024 2:07 am — Replies 48 — Views 5260