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Income early in one's career is typically lower than incomes later in one's career. So even if retirement income is lower than final career income, there's stil
by tvanantwerp 10y ago
Income early in one's career is typically lower than incomes later in one's career. So even if retirement income is lower than final career income, there's still a good chance it's greater than entry-level income and would be taxed at a higher rate. You've also got to keep in mind that taxes may eventually rise. America's top rate today is much, much lower than the top rate historically--no reason to believe it couldn't swing back the other way.
- maerF0x0 10y agooh i see the pattern like someone making $50k a year to start, but rises to $150k by end of career and whom is planning for a retirement income of the average (100k)... Then a Roth is a good deal when making $50k (at the beginning) and regular is better when making $150k (at the end)... Tricky.
- dennisgorelik 10y agoIf you are making $50K/year - it does NOT make sense to save in order to push retirement income up to $100K/year. On the other hand, saving when you have $150K/year income in order to push your retirement up to $100K/year could make sense. (All numbers in this example are inflation adjusted to each other)
- taurath 10y agoKeep in mind Roth is no longer an option after 120k.