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Personal Finance 15w
so If I believe I will be in a lower tax bracket when I retire. It’s smarter to put all my money in 401k because compounding a bigger number over 40 years will outweigh the taxes you will pay later
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Anonymous 15w

Depends. Some would argue you should have a mix of Roth and traditional

upvote 7 downvote
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Anonymous 15w

Idk why you would plan on being in a lower tax bracket in retirement. I plan on being in a higher tax bracket the older I get. Plus If you make more than $150K you can’t contribute to a Roth IRA so I would say contribute to one while you can.

upvote 6 downvote
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Anonymous 15w

Bad op

upvote 5 downvote
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Anonymous 15w

the first sentence actually, “If I believe I will be in a lower tax bracket, when I retire”

upvote -4 downvote
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Anonymous replying to -> #2 15w

Do you plan on having a job when your retired? Nope didn’t think so

upvote -5 downvote
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Anonymous replying to -> OP 15w

That doesn’t mean you can’t be in a higher tax bracket

upvote 7 downvote
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Anonymous replying to -> #1 15w

Taxable income determines your tax bracket bud

upvote -3 downvote
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Anonymous replying to -> OP 15w

Yeah I do plan on having taxable income. I plan on pulling from my investments and I will have to pay taxes on that income. Especially if all your money is in a 401K instead of an IRA, you’re going to pay taxes on all that income.

upvote 6 downvote
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Anonymous replying to -> #2 15w

Ok you must be smooth brained, do you not understand how compounding interest works?. For example If you invested 1,000$ in 401k vs 750$ after tax money into a roth, monthly, for 40 years, you would have 2.5 million vs 1.75 million. Also, if you don’t have a job, you can withdraw the first 50,000$ at like 10-12%. So you’re numbers are way off bud

upvote -4 downvote
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Anonymous replying to -> OP 15w

His/her point still stands that someone can be in a higher tax bracket in retirement though

upvote 5 downvote
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Anonymous replying to -> #1 15w

I understand that, but that wasn’t my question

upvote -4 downvote
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Anonymous replying to -> OP 15w

I’m saying I’m planning on pulling more per year during retirement than I make right now. I started maxing out my 401K when I was 23 and also plan on having income from real estate investments. So I’ll pay more in taxes in retirement than I’m paying right now.

upvote 7 downvote
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Anonymous replying to -> OP 15w

You don’t have to be an ass about it though😂

upvote 9 downvote
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Anonymous replying to -> #1 15w

I wasn’t trying to be an ass, I just wanted to make sure my math was mathing. Also I can see why a roth might be better for higher income people later in life

upvote -5 downvote
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Anonymous replying to -> OP 15w

You weren’t trying to be an ass when you called me smooth brained?

upvote 8 downvote
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Anonymous replying to -> OP 15w

You literally called someone smooth brained for stating something that’s true

upvote 9 downvote
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Anonymous replying to -> #3 15w

stfu

upvote -2 downvote
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Anonymous replying to -> OP 15w
post
upvote 13 downvote
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Anonymous replying to -> OP 15w

Brother calm down #1 and #2 are making valid points

upvote 2 downvote