And don’t get a Roth IRA, where you pay taxes going in, even if your tax bracket is low.
“And don’t get a Roth IRA, where you pay taxes going in, even if your tax bracket is low.”
My mom is a CPA and claims the Roth is the biggest government scam she can remember. Her logic is as follows:
1 - A bunch of dummies converted IRA to Roth IRA and incurred a huge tax burden, boosting the overall government revenue.
2 - The gov’t never leaves rules alone and she believes they will means test the “tax free” part on the backend.
3 - MOST IMPORTANT. Most people have a much higher tax bracket during their savings years than during their retirement. So, you being taxed more now on your principal (Roth) than you would be later on your compound interest (normal IRA). The overall power of the extra principal wields it’s mathematical edge very quickly for normal IRAs.