I've been invested in my ROTH since the beginning, calender year 1998. It's been a fantastic investment tool. I started the ROTH to hedge myself thinking that pensions would eventually disappear for the most part and I wanted something to compliment my 401k plan through my employer. There are many benefits and reasons to be invested in a ROTH plan and it does make sense; however, I've been thinking differently lately and that thinking is making me lean towards the Traditional IRA.
The reason? Taxes.
Assuming your tax rate will be less in your retirement years why pay all the taxes up front at a higher tax rate just to have that money grow tax free when you can contribute to a Traditional IRA, grow your money tax deferred eventually paying less taxes in retirement?
I haven't really researched much about this, but it's been on my mind within the last week.
What's your thoughts on this?
The reason? Taxes.
Assuming your tax rate will be less in your retirement years why pay all the taxes up front at a higher tax rate just to have that money grow tax free when you can contribute to a Traditional IRA, grow your money tax deferred eventually paying less taxes in retirement?
I haven't really researched much about this, but it's been on my mind within the last week.
What's your thoughts on this?