Comments on: Reshuffle Your Retirement, Part Deux http://www.fivecentnickel.com/2005/05/04/reshuffle-your-retirement-part-deux/ personal finance tips, tricks, and commentary Sat, 21 Nov 2009 18:35:25 -0500 http://wordpress.org/?v=abc hourly 1 By: Man http://www.fivecentnickel.com/2005/05/04/reshuffle-your-retirement-part-deux/comment-page-1/#comment-114816 Man Mon, 28 Jan 2008 20:55:16 +0000 http://fivecentnickel.com/2005/05/05/reshuffle-your-retirement-part-deux/#comment-114816 Again and again, I see the advantage of the Roth IRA. However, if IRA is for your retirement funding, the best place is to put money in tax advantaged savings of IRA. For most people it only makes sense to contribute to 401 k or tradional IRA. The argument fiancial people give is that your tax bracket will be high at the retirement. I would be happy to pay more taxes in retirement, if I have that type of money. But what this does is that it stops individual to save more currently. For every $4000 in your 401k or traditional IRA, you are puting only $3850 or $3350 for federal tax rates of 15 and 25%, respectively and state tax rate of ~8%. On the other hand you will be investing $6494 and $7462 for that $4000 in Roth IRA for these tax rates. Again and again, I see the advantage of the Roth IRA. However, if IRA is for your retirement funding, the best place is to put money in tax advantaged savings of IRA. For most people it only makes sense to contribute to 401 k or tradional IRA. The argument fiancial people give is that your tax bracket will be high at the retirement. I would be happy to pay more taxes in retirement, if I have that type of money. But what this does is that it stops individual to save more currently. For every $4000 in your 401k or traditional IRA, you are puting only $3850 or $3350 for federal tax rates of 15 and 25%, respectively and state tax rate of ~8%. On the other hand you will be investing $6494 and $7462 for that $4000 in Roth IRA for these tax rates.

]]> By: nickel http://www.fivecentnickel.com/2005/05/04/reshuffle-your-retirement-part-deux/comment-page-1/#comment-69 nickel Wed, 01 Jun 2005 04:13:07 +0000 http://fivecentnickel.com/2005/05/05/reshuffle-your-retirement-part-deux/#comment-69 I agree completely. But for some people this just isn't possible. I'm working toward maxing both, as well as my wife's Roth. However, that would be >$30k this year, and we just can't swing it (yet). But we're getting there. As I noted, I increase the amount of salary that I am putting into retirement by 1% per year. Thus, the amount we're saving grows not just due to raises, but also due to an increased savings rate. I agree completely. But for some people this just isn’t possible. I’m working toward maxing both, as well as my wife’s Roth. However, that would be >$30k this year, and we just can’t swing it (yet). But we’re getting there. As I noted, I increase the amount of salary that I am putting into retirement by 1% per year. Thus, the amount we’re saving grows not just due to raises, but also due to an increased savings rate.

]]> By: Jose Anes http://www.fivecentnickel.com/2005/05/04/reshuffle-your-retirement-part-deux/comment-page-1/#comment-68 Jose Anes Tue, 31 May 2005 17:33:33 +0000 http://fivecentnickel.com/2005/05/05/reshuffle-your-retirement-part-deux/#comment-68 I prefer the idea of maxing out both (401k AND Roth), even if I need to be conservative on my day to day life. Why wait for latter to build the egg nest? I prefer the idea of maxing out both (401k AND Roth), even if I need to be conservative on my day to day life.

Why wait for latter to build the egg nest?

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