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Old 07-17-2008, 05:51 PM   #21
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Yeah, I think I have talked myselk into IRA (Not ROTH). I think its safe to assume taxes will be lower when we are Seniors. At least that sounds reasonable.
Frankly, we have not found that to be true. If I were you I would head for the ROTH. We am facing RMD's in T-IRA accounts and it is going to push us into the top of the 15% bracket if not the bottom of the 25% bracket. Ages 70 and 68. And BTW spend all that taxable money before you reach RMD time.
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Old 07-17-2008, 07:03 PM   #22
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Frankly, we have not found that to be true. If I were you I would head for the ROTH. We am facing RMD's in T-IRA accounts and it is going to push us into the top of the 15% bracket if not the bottom of the 25% bracket. Ages 70 and 68. And BTW spend all that taxable money before you reach RMD time.
What was your tax bracket during the working years? I'm in the 28% bracket now so 15% sounds awesome to me. As with everything it depends.
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Old 07-17-2008, 09:22 PM   #23
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Originally Posted by MXR Dad View Post
Yeah, I think I have talked myselk into IRA (Not ROTH). I think its safe to assume taxes will be lower when we are Seniors. At least that sounds reasonable.
Not a good assumption, IMHO. If the tax brackets stay the same, maybe. But I suspect they will get raised. And this isn't a Barack or Dem bashing post. I just don't see how things will get paid for without raising taxes.

So anyway, don't disregard the Roth. Maybe you could do 50/50.

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Old 07-17-2008, 09:58 PM   #24
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Just so somebody says it: The Roth is tax free today. It's not a sure bet that the laws won't change in the future. Government is taking on more and more expenses (that is apparently what the public wants), and these Roths, in the hands of "millonaires," will be very tempting sources for increased funding. It seems unlikely today (and I converted all my Traditional IRAs to Roths long ago, so obviosly I don't think it is likely), but the possibility can't be ruled out.
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Old 07-17-2008, 10:58 PM   #25
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I replied to this but I dont know where it went. Hope it doesnt Double Post.

Well, to further prove my statement from original thread, :Head up the $#$, I will add to it........ I dont know what my current tax rate is. I will have to do some research on that one. I am in Texas if that lends a hand.
I will be back after I leartn what my rate is. (Feeling pretty ignorant right now, but thats ok) I WILL GET THIS DOWN IN DUE TIME
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Old 07-17-2008, 11:15 PM   #26
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I was just asking about your Federal rate. Neat little estimator:

Tax Brackets (Federal Income Tax Rates) 2000 through 2008

It's going to be your own personal calculus. As you can see from the posts, no one can be sure what the future holds. I have a relatively large income and a large mortgage, both because I live in California where cost of living is higher. My plan in retirement is to have no mortgage and (try) living on a smaller income. No mortgage + standard deduction should keep me from having to draw too much from my retirement accounts. Now just to be clear, I've hedged my bets as well by opening Roths, but my accounts are weighted more in traditional. I plan on building up after tax accounts later as well.
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