I wish I'd earned a "tiny" 5% on some of my retirement account equity investments in recent times. But you can save the money in the same investment type as in your tIRA if you want. The worst case is you'd have the same earnings as you'd have in the tIRA for the few months you'd have the money in your taxable brokerage account, and you'd owe some taxes on capital gains (not necessarily now if you can replace with other funds) and maybe dividend tax on 1-2% annually. Not much difference. The best case is the investment tanks and you have a capital loss, plus the option to add more money from other funds to buy more shares with your later tIRA contribution.Could you expand on this statement? For example, if I decide to wait until filing taxes to decide whether to contribute to a Trad IRA, should I be saving my future contribution money somewhere other than a regular savings account (which only accumulates a tiny amount of interest)?You're only missing out on whatever tax treatment your contributions would eventually end up getting, but absolutely not the growth itself, unless you're saving future contribution money in a mattress.
Statistics: Posted by tibbitts — Sun Dec 03, 2023 9:28 pm — Replies 37 — Views 1876