south central WI | dogg4585 - 12/25/2024 10:55
Roth is debatable. You're paying tax now so have less dollars compounding. Your snowball is smaller starting out. Time value of $ comes into play. Also there's income limits on roth. It's great if you're in a low tax bracket.
It depends on how you do it. If you have a theoretical $12k sitting in your account and decide to invest that in either a roth or traditional, the roth is usually way better in the end. If you take that $12k and decide to put it in a traditional, then also put the tax savings amount in the traditional also, that's where it comes out ahead. You will also have to pay taxes on it when you retire, and are required to take RMD's on it, where a roth doesn't require that (while you are alive). I'm all Roth here, I barely have enough to do that, I can't do more investments. |
Hey Boone and others, any tax advantages you care to share?
