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north central Ohio | If you invest $10,000 in an IRA it will be worth $42,478 in 20 years if it averages 7.5%.
Not knowing what tax bracket you're in but same $10,000 investment at a 28% tax bracket gives you $7,200 to invest now and at 7.5% will be worth $30,584 in 20 years tax free.
I personally would do an IRA and get as much invested as possible. If your income is that great in retirement that you have to pay some tax it will be a "great" problem to have.
Say you drop off to a 20% bracket in retirement that $42,478 is $33,982 after taxes or if you stay in same bracket 28% it will be 30,584 after taxes. Interesting it came out the same. Is the government smarter then most give them credit telling young people a roth is more valuable to them or is 20 years about the break in working for you. Double check with a investment person and an accountant but think this is how they work. Good Luck.
Edited by pigfarmer82 1/20/2024 11:56
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Traditional vs Roth IRA
