If a person stuffs money into reasonable investments in a tax sheltered account, whether it is ROTH or pretax, they will benefit. Sometimes it seems people get wrapped around the axle about which is exactly the best. It depends. Dogmatic reasoning either way is not optimal.
If you want to pay tax up front and remove a tax lien, invest in ROTH.
If you want to defer tax liability into the future for the benefit now, invest in pretax.
If you want to pile money away for heirs that is tax free, invest in ROTH.
If you want to pile money away for heirs that is not tax free, invest in pretax.
But by all means pile money away.
Commit to a plan, keep it simple, and be consistent.
If you want to pay tax up front and remove a tax lien, invest in ROTH.
If you want to defer tax liability into the future for the benefit now, invest in pretax.
If you want to pile money away for heirs that is tax free, invest in ROTH.
If you want to pile money away for heirs that is not tax free, invest in pretax.
But by all means pile money away.
Commit to a plan, keep it simple, and be consistent.
Statistics: Posted by Dunningedangkruger — Sat Feb 15, 2025 8:24 pm