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<<InParadise
TMF taught me about stocks and ETFs, IRAs and eventually Roths>>
GREAT EXPLANATION!
I know that this is a really old post, over 12 months ago, but I just read it and have questions about the attractiveness to you of the Roth IRA.
My take: Having to give the Feds, up front, my fully taxed contribution into a Roth, when I'm at the highest incremental tax rate, didn't make sense to me. (We had several years of >30% incremental rate.) At that rate, conventional IRA contributions enjoyed an immediate 30% 'gain', since we didn't have to pay the tax.
Then, as retired, my much lowered retirement income puts us in the lowest tax increments.
I never "Roth'ed it". I wanted max dollars at work from day one, and 'suffer' the taxed results of our gains as we draw down the RMD's, but at the MUCH lower incremental rates. (They're still 'annoying', but...)
Comments?
(Your TMF comments: Same here. Gained lots of good nuggets, along with some forgettable stuff.)
