CF73
First Time Poster
Cash: $ 0.25
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Joined: 15 Oct 2009
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| Conventional wisdom |
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Conventional wisdom says that when I retire that my taxes will be lower and that because of this I should be taking advantage of pre-tax investing(which I am). I am wondering if this wisdom will hold true in light of rampant runaway spending of our federal government which I am thinking will cause every ones taxes to go much higher. I am 54 and might be able to retire as early as 62 or possibly 66. My fear is that Obama might get relected or at least another tax and spend Democrat. That will cover most of the time I have left with a huge potential for the effects of all this spending to have farther reaching consequences. Why should I not consider getting away from pre-tax investing and consider putting my money in Roth-IRAs? Is it possible that my tax rate now might be less than when I retire?
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Thu Oct 15, 2009 3:21 am |
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BillK
Member
Cash: $ 3.45
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Joined: 06 Oct 2009
Location: Wisconsin
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You ask a great question. I keep going back and forth in where things should be invested also. The last couple years have been easier because of the lack of funds for investing.
Because I have 15-20 years before retirement, I can afford to be a bit riskier. With having some funds on the side and wanting to buy a couple stocks I bought them with regular IRA money. They tripled in value. Of course, it was hard to make a mistake if you got back in the market in March.
On our website, we have a calculator called IRA vs Roth. It may be interesting to check out. It takes factors of taxes you are paying now and those in the future. Then it shows based upon your own crystal ball which one will benefit you the most.
My personal opinion is to error on the side of having a balance of traditional and Roth IRAs.
BillK
http://www.firstfinancialhelp.com offering free financial advice with free financial calculators to enter custom information.
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Thu Oct 15, 2009 3:31 am |
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coaster
Senior Advisor
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Location: Wisconsin
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"Conventional wisdom" often has a way of getting blown out of the water periodically. I think it's wise to take a "balanced" approach. Not "putting all your eggs in one basket" IS one piece of conventional wisdom that seems to weather whatever calamities you want to throw at it. 
~Tim~
Eye Candy : Why Whimsy
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Thu Oct 15, 2009 4:06 am |
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jacovsamuelj
Member
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Joined: 24 Nov 2009
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I am also planning for my retirement..
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Tue Nov 24, 2009 10:57 am |
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redalice
New Member
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Joined: 10 Jan 2010
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quote:
Originally posted by jacovsamuelj
I am also planning for my retirement..
*nods*
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Sun Jan 10, 2010 1:50 pm |
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jennquilter
Contributing Member
Cash: $ 6.80
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Joined: 25 Jul 2009
Location: Seattle, WA
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I'm with coaster above, not putting your eggs all in one basket. When you're really unsure of what taxes will be like varying your tax obligations is a good thing to look into.
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401k and IRA
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Thu Jan 28, 2010 7:25 pm |
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