My advisor tells me this as well: I will be in a higher tax bracket when I retire (maybe not immediately, but eventually and moving forward) and I am contributing to a Solo Roth 401K and Whole Life Insurance for tax-free growth. Extra goes into a brokerage account.
As Warren Buffet says, never underestimate the value of compounding . Therefore, use traditional 401 k. You are contributing more and it is costing you less. …… if you have to pay high taxes, it means you did quite well! Let Uncle Sam do well too! Stop the greed!
My advisor tells me this as well: I will be in a higher tax bracket when I retire (maybe not immediately, but eventually and moving forward) and I am contributing to a Solo Roth 401K and Whole Life Insurance for tax-free growth. Extra goes into a brokerage account.
Are most company matches for traditional 401k accounts and not Roth 401k ?
Thank you Mr Slott,. What if you just started working and are contributing to a 403b? Are you allowed to convert that to Roth?
Definitely convert yearly to a Roth up to your next marginal bump. Be intentional.
As Warren Buffet says, never underestimate the value of compounding . Therefore, use traditional 401 k. You are contributing more and it is costing you less. …… if you have to pay high taxes, it means you did quite well! Let Uncle Sam do well too! Stop the greed!
And retirees will withdraw more from their traditional ira's during the go go years.