roth 401k and roth dont seem good deal

[cute fuzzy bunny]

Simple. I cant contribute to a pretax plan as I, like most early retirees, have no earned income. My wife contributes the max to her plan. After that we've already paid taxes on our money, why not invest what we can in a roth and let it grow and be withdrawn tax free?

 

[mathjak107]

Simple.  I cant contribute to a pretax plan as I, like most early retirees, have no earned income.  My wife contributes the max to her plan.  After that we've already paid taxes on our money, why not invest what we can in a roth and let it grow and be withdrawn tax free?

yes this is true ,if you cant deduct your 401k or ira than all this is a moot point

 

[cute fuzzy bunny]

this is a moot point

Comb your hair just right, and nobody will notice

 

[Tadpole]

It doesnt matter.  Fifteen minutes before I make a Roth withdrawal, the feds will institute a national sales tax as a replacement for the income tax

I agree that most proposed solutions to the boomer retirement involve a wealth transfer within the boomer generation from one boomer savings account into another boomer checking account or younger worker investment account. The flat tax/sales tax proponents are coming out in force now.

I max out my husband and my deferred "401k" and Roth IRA. I didn't start the Roth's until late in the game. They are easy access to money for critical situations; sort of like a creation of a ready cash fund. So I am hoping they will continue to be untaxed. This is just one more gamble in the politicized savings game.

Also, there was a comment in one of the posts that boomers will continue to work because of low savings rate. There is no reason to believe that low earners will delay claiming SS benefits starting at age 62. So, for many that expect to work in retirement, the SS fund will be a supplemental income fund. The bend points make this especially attractive for poor workers with low paying jobs. I think there will be a lot of people with this profile.

 

[2B]

There is no reason to believe that low earners will delay claiming SS benefits starting at age 62. So, for many that expect to work in retirement, the SS fund will be a supplemental income fund. The bend points make this especially attractive for poor workers with low paying jobs. I think there will be a lot of people with this profile.

It isn't just the people in low paying jobs. I've talked with several hard heads making decent money that say SS is going broke and they want to get their money before it runs out. They don't seem to care about tax implications or the lower payment by not waiting until true retirement. Of course, these people are the same ones that have little or no savings. I suspect they see this as a way to enhance their income and lifestyle.