In a sense, it makes no difference....

Take 1000 dollars deduct taxes, say 30%

Hold it for 20 years and make say 5% a year in interest. $700 (1.05)^20

is completely equal to $1000(1.05)^20 and then getting taxed on it deducting 30%.

Now, of course, nothing remains the same like it does in this example. taxes go up, taxes go down, inflation, investment opportunities, you live, you die etc. etc.. so yeah, the future's unknowable.

A friend gave me the advice of plan on being rich, sorta makes sense I suppose, a certain amount of Roths to be sure so maybe you can play games in the future eg, stay under a certain tax bracket but you just max out on retirement matching is the only safe advice, bascially all of this is a hedge against inflation, eg, you don't get taxed (as much) on inflation wealth.

In response to this post by FfxStationHokie

Posted: 05/21/2021 at 09:52AM

401K vs Roth 401K is a no brainer? Go Roth 401K? (inside) -- FfxStationHokie 05/21/2021 09:17AM

Max the 401k, then fund the Roth as you are able... -- Hungry Joe 05/21/2021 4:36PM

It's highly likely you are better off deferring taxes in the present -- Synaesthesia 05/21/2021 11:47AM

SAVE SAVE SAVE, because tomorrow is never guaranteed -- darnellm 05/21/2021 11:22AM

If tomorrow isn't guaranteed, then shouldn't we spend, spend, spend? ** -- HokieNoVA 05/21/2021 11:35AM

No, I was mocking ** -- darnellm 05/21/2021 12:14PM

LoL, I read it that way too. ** -- TekkNerd 05/21/2021 11:57AM

Depends on future tax rates. It is a roll of the dice either way -- fordham 05/21/2021 11:19AM

Haven't been able to do a Roth is years - Stupid wage limits ... -- OXVT 05/21/2021 11:11AM

What about a Hagar 401K? ** -- HokieDan95 05/21/2021 10:15AM

I dunno, you really got me on that one. ** -- `lag 05/21/2021 10:24AM

They only offer it in Panama. ** -- Spud 05/21/2021 10:47AM

And they only offer it Right Now ** -- Tafkam Hokie 05/21/2021 10:57AM

It's good to have a Roth, if you can. There are limits on Roth... -- Spud 05/21/2021 09:59AM

Roth IRA and Roth 401K are completely separate ** -- Hokerer 05/21/2021 10:07AM

The only thing that makes sense is put it all in Dogecoin -- Happy Dog 05/21/2021 09:54AM

In a sense, it makes no difference.... -- `lag 05/21/2021 09:52AM

It only makes a difference if your tax rate later is different than now -- Tafkam Hokie 05/21/2021 10:08AM

All true, until they change the rules- for the common good ofc ** -- ColoVT82 05/21/2021 10:35AM

And some past presidents have brought that up. -- `lag 05/21/2021 10:44AM

We agree, just setting the starting point that .... -- `lag 05/21/2021 10:30AM

It's not 100% Roth, but that's where you should put your early money -- EDGEMAN 05/21/2021 09:40AM

You can't know the unknowable- split 50/50 -- One4VT 05/21/2021 09:34AM

Yep. Roth grows tax free with no tax consequences. Regular will cost you -- UTPr0sim 05/21/2021 09:30AM

Roth makes sense if your current wages are lower than you hope -- ElbertoHokie 05/21/2021 09:28AM

Also, since Roth is taxed now, you have in theory less money to invest -- Late 80s Hokie 05/21/2021 09:38AM

In a sense, it makes no difference....

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