Comments on: Roth IRA or Traditional IRA? http://www.myretirementblog.com/roth-ira-or-traditional-ira.html Retire happy, healthy and wise. Sat, 22 Nov 2008 12:30:29 +0000 http://wordpress.org/?v=2.6.3 By: Investing Blog http://www.myretirementblog.com/roth-ira-or-traditional-ira.html#comment-12103 Investing Blog Sat, 12 May 2007 23:00:49 +0000 http://www.myretirementblog.com/roth-ira-or-traditional-ira.html#comment-12103 Excellent points. Your contributions actually cost more than $4k, but if invested properly, will return a lot more than that over the long run. I think you bring up another good point by saying "do it while you can." Of course, I would love to make more than $115k, but I don't. So why not plan now, then alter the plan once my income increases. It's not like they'll take the money I saved away. Plus, if you open your <a>roth ira retirement account</a> at a reputable bank, it will help you build a customer relationship with that institution. Hey, every little bit counts. Again, excellent tips, and keep it up! Excellent points. Your contributions actually cost more than $4k, but if invested properly, will return a lot more than that over the long run.

I think you bring up another good point by saying “do it while you can.” Of course, I would love to make more than $115k, but I don’t. So why not plan now, then alter the plan once my income increases. It’s not like they’ll take the money I saved away. Plus, if you open your roth ira retirement account at a reputable bank, it will help you build a customer relationship with that institution. Hey, every little bit counts.

Again, excellent tips, and keep it up!

]]> By: missiondebtfreedom http://www.myretirementblog.com/roth-ira-or-traditional-ira.html#comment-445 missiondebtfreedom Wed, 31 Jan 2007 18:57:43 +0000 http://www.myretirementblog.com/roth-ira-or-traditional-ira.html#comment-445 The best analogy I have ever heard comparing traditional vs. Roth IRAs is...Would you rather pay taxes on the seed or the harvest? In other words, would you rather pay taxes on money now when you don't have that much (Roth is after-tax money), or pay taxes later upon withdrawal (Traditional IRAs are deductible, or pre-tax, and are taxed upon withdrawal - as are 401ks). The best analogy I have ever heard comparing traditional vs. Roth IRAs is…Would you rather pay taxes on the seed or the harvest? In other words, would you rather pay taxes on money now when you don’t have that much (Roth is after-tax money), or pay taxes later upon withdrawal (Traditional IRAs are deductible, or pre-tax, and are taxed upon withdrawal - as are 401ks).

]]> By: The Carnival Of Investing #58, Monopoly Edition » Silicon Valley Blog About Money http://www.myretirementblog.com/roth-ira-or-traditional-ira.html#comment-421 The Carnival Of Investing #58, Monopoly Edition » Silicon Valley Blog About Money Mon, 29 Jan 2007 15:47:03 +0000 http://www.myretirementblog.com/roth-ira-or-traditional-ira.html#comment-421 [...] My Retirement Blog gives us Roth IRA or Traditional IRA? Come by and explore the various IRA vehicles available to you. -ooOoo- [...] [...] My Retirement Blog gives us Roth IRA or Traditional IRA? Come by and explore the various IRA vehicles available to you. -ooOoo- [...]

]]> By: fivecentnickel.com http://www.myretirementblog.com/roth-ira-or-traditional-ira.html#comment-409 fivecentnickel.com Sat, 27 Jan 2007 03:27:53 +0000 http://www.myretirementblog.com/roth-ira-or-traditional-ira.html#comment-409 <strong>Weekly Roundup - 01/26/07...</strong> Here’s a quick look at some articles that caught my eye over the past week: JLP talked about retirement risks. Jim talked about when frugality is a fault. Flexo is having trouble with his TIAA-CREF SEP-IRA. FMF talked about the best place to sa... Weekly Roundup - 01/26/07…

Here’s a quick look at some articles that caught my eye over the past week:

JLP talked about retirement risks.
Jim talked about when frugality is a fault.
Flexo is having trouble with his TIAA-CREF SEP-IRA.
FMF talked about the best place to sa…

]]> By: CreditShack http://www.myretirementblog.com/roth-ira-or-traditional-ira.html#comment-359 CreditShack Mon, 22 Jan 2007 14:32:56 +0000 http://www.myretirementblog.com/roth-ira-or-traditional-ira.html#comment-359 That's a great observation that a $4,000 contribution to a Roth IRA "costs more" than a Traditional IRA. While I've always understood the pre-tax vs after-tax considerations, I never thought about the contribution limit itself in terms of pre-tax earnings. At a 30% combined fed & state income tax rate (both now and in retirement), the Roth IRA contribution limit is equivalent to about $5,700 pre-tax. That's 42% more money that you can sock away than with the Traditional IRA! That’s a great observation that a $4,000 contribution to a Roth IRA “costs more” than a Traditional IRA. While I’ve always understood the pre-tax vs after-tax considerations, I never thought about the contribution limit itself in terms of pre-tax earnings. At a 30% combined fed & state income tax rate (both now and in retirement), the Roth IRA contribution limit is equivalent to about $5,700 pre-tax. That’s 42% more money that you can sock away than with the Traditional IRA!

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