4 ms·
Adding on to your first paragraph about dependency on stock market performance for retirement. 401ks that my generation is used to are a concept only ~36years
by trenning 5y ago
Adding on to your first paragraph about dependency on stock market performance for retirement.
401ks that my generation is used to are a concept only ~36years old, even at that most companies didn't start offering them until the 90s.
It's a very young tool that we're only just now seeing play out for people reaching retirement age that missed the ubiquitous pension era.
And roth IRA was introduced in 1997.
No comment on any of this being good or bad, I think it's interesting to look at the historical perspective of it though.
- anonporridge 5y agoI'll admit that one of the things that makes me nervous about the Roth, and not taking your tax advantage now instead of later, is that in an extreme situation, the government could renege on the promise of tax free gains and distributions. They can't renege on the tax advantage they already gave you with a traditional.
- labcomputer 5y agoYou have to think more creatively :) What about a surtax on distributions from traditional IRAs?
- anonporridge 5y agoGood point. I don't have a cohesive rebuttal.
- mlac 5y agoI do wonder if it will be durable… or they will just change it to something else in 30 years (when I can touch the money).