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| Retirement Saving for retirement - questions about pensions and pension schemes, 401k's, public and private company pensions, and other saving schemes. |
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I am also contributing the max to a ROTH IRA for my wife and I each year. I certainly could invest the money post tax instead, but I was under the impression that taking advantage of the max investment to 401k and IRAs were the best way to save for retirement. |
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You must pay tax either now, or later. The questions to ask are:
1- Will tax rates be stable, go up, or go down by the time I retire? 2- Including inflation, will my income be higher or lower by the time I retire? 3- Do I want to use my money as it suites me, or as it suites the government? In many cases you will find definite advantages to using a Roth plan with either your IRA or 401K. |
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If the 401K plan has a the option of some good mutual funds with a successful track record then I would use it, especially if your employer has a matching program. That would be free money for you.
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-Jesse Interested in Dave Ramsey Coupon Codes? Visit my Dave Ramsey Coupon Code blog to learn more. |
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