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Old 02-08-2017, 08:25 PM
 
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I still do not know what I am going to do. So much can happen in 24 years. Hopefully I will still be around to enjoy it.

I am trying to use a calculator to compare and I do not understand it.
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Old 02-08-2017, 09:58 PM
 
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Based on the calculator, the tax liability is actually lower with the Roth. However, the difference on a monthly draw is $80. That does not seem like much money. In addition, I can deduct my payments from my taxes. I am leaning towards traditional.
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Old 02-09-2017, 09:25 AM
 
Location: RVA
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Yes but there are NO taxes on the monthly withdrawal in retirement. Pay what you know now or pay maybe more later. It's impossible to be 100% sure. My retirement income will be much higher than I had figured in my younger days, and back then SS was not taxed regardless of retirement income, and there was no Roth. People that saved after tax income for retirement, before the days of IRAs and 401k, didn't worry about withdrawal from savings counting much towards taxable income. That is why a Roth, even at only $5500/yr, is well worth the trouble to have in addition to an employer matched 401k and IRA. BUT it's true, tou have to have enough left over to save for it to work. The less you live on, and the more tou save, the far easier it will be to maintain your lifestyle in retirement. Simple fact, oft overlooked.
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Old 02-09-2017, 10:56 AM
 
Location: Omaha, Nebraska
7,330 posts, read 4,179,262 times
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Quote:
Originally Posted by goodlife36 View Post
Based on the calculator, the tax liability is actually lower with the Roth. However, the difference on a monthly draw is $80. That does not seem like much money. In addition, I can deduct my payments from my taxes. I am leaning towards traditional.
You're thinking too much. The difference between putting the money in a Roth IRA versus a traditional IRA pales in comparison to the difference between putting the money in any type of IRA versus a taxable investment account (or worse, simply spending it now!). Don't let the perfect be the enemy of the good, just get an IRA of some sort started ASAP.
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Old 02-09-2017, 02:49 PM
 
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Originally Posted by Aredhel View Post
You're thinking too much. The difference between putting the money in a Roth IRA versus a traditional IRA pales in comparison to the difference between putting the money in any type of IRA versus a taxable investment account (or worse, simply spending it now!). Don't let the perfect be the enemy of the good, just get an IRA of some sort started ASAP.
You are right.
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Old 02-09-2017, 02:51 PM
 
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I opened a traditional IRA today. I want the tax deduction now.


Thank you so much for your advice.
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Old 02-09-2017, 04:00 PM
 
Location: Upstate, NY
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Originally Posted by jlawrence01 View Post
I have been with Vanguard 25+ years and never had bad service once.
Yes. I have to agree. I've had nothing but excellent service. Felt I had to chime in.
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Old 02-09-2017, 04:08 PM
 
Location: Upstate, NY
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Originally Posted by goodlife36 View Post
I opened a traditional IRA today. I want the tax deduction now.


Thank you so much for your advice.
Just a note. You could have both traditional and Roth. You just can't contribute more than $5500. total.
DC
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