Comments on: My Way of Choosing Between Traditional and Roth Retirement Accounts, Either IRA’s or 401(k)’s http://www.wisemoneydecisions.com/2008/04/05/my-way-of-choosing-between-traditional-and-roth-retirement-accounts-either-iras-or-401ks/ Sat, 22 Nov 2008 07:08:57 +0000 http://wordpress.org/?v=2.3.3 By: Jeff http://www.wisemoneydecisions.com/2008/04/05/my-way-of-choosing-between-traditional-and-roth-retirement-accounts-either-iras-or-401ks/#comment-894 Jeff Thu, 03 Jul 2008 06:04:11 +0000 http://www.wisemoneydecisions.com/2008/04/05/my-way-of-choosing-between-traditional-and-roth-retirement-accounts-either-iras-or-401ks/#comment-894 Bob: Good comments. I agree that relying on stocks for income can be risky if you're teetering on the edge of having enough to fund retirement. My goal is to have significantly more than enough. If I can achieve my goal I won't need to worry about a 5 year bear market. However, if I'm not fortunate enough to have more than I need, I will need to be more careful as you suggest. Your tax rate point is also good. As I mentioned in the article, funding both a pre-tax and post-tax retirement account is probably the best approach. I still plan to lean heavily toward a traditional IRA. I visited your blog. I like <a href="http://www.retirement-income.net/blog/articles/4/how-to-retire-early-four-things-you-must-know" rel="nofollow"> "How to Retire Early – Four Things You Must Know." </a> Thanks for your comment! Bob:

Good comments.

I agree that relying on stocks for income can be risky if you’re teetering on the edge of having enough to fund retirement. My goal is to have significantly more than enough. If I can achieve my goal I won’t need to worry about a 5 year bear market.

However, if I’m not fortunate enough to have more than I need, I will need to be more careful as you suggest.

Your tax rate point is also good. As I mentioned in the article, funding both a pre-tax and post-tax retirement account is probably the best approach. I still plan to lean heavily toward a traditional IRA.

I visited your blog. I like “How to Retire Early – Four Things You Must Know.”

Thanks for your comment!

]]> By: Bob Richards http://www.wisemoneydecisions.com/2008/04/05/my-way-of-choosing-between-traditional-and-roth-retirement-accounts-either-iras-or-401ks/#comment-893 Bob Richards Thu, 03 Jul 2008 04:05:43 +0000 http://www.wisemoneydecisions.com/2008/04/05/my-way-of-choosing-between-traditional-and-roth-retirement-accounts-either-iras-or-401ks/#comment-893 Your plan to sell stocks for income is extremely risky. Why? Because if you have a 5 year bear market, your portfolio will implode. Please read Paul Grangaard's book and then you will reconsider. Secondly, the tax rate issue is not just a personal issue. It's a macro issue--how does the US government operate when there are only 2 working peope for every retiree? Tax rates MUST rise. Just because we have a favoarble cap gains rate today does not mean it won't be 40% in 10 years. Your plan to sell stocks for income is extremely risky. Why? Because if you have a 5 year bear market, your portfolio will implode. Please read Paul Grangaard’s book and then you will reconsider.

Secondly, the tax rate issue is not just a personal issue. It’s a macro issue–how does the US government operate when there are only 2 working peope for every retiree? Tax rates MUST rise. Just because we have a favoarble cap gains rate today does not mean it won’t be 40% in 10 years.

]]> By: Investing In Annuities http://www.wisemoneydecisions.com/2008/04/05/my-way-of-choosing-between-traditional-and-roth-retirement-accounts-either-iras-or-401ks/#comment-866 Investing In Annuities Wed, 25 Jun 2008 03:42:14 +0000 http://www.wisemoneydecisions.com/2008/04/05/my-way-of-choosing-between-traditional-and-roth-retirement-accounts-either-iras-or-401ks/#comment-866 A very well thought out plan you have there, that always wins in the in A very well thought out plan you have there, that always wins in the in

]]> By: Jeff http://www.wisemoneydecisions.com/2008/04/05/my-way-of-choosing-between-traditional-and-roth-retirement-accounts-either-iras-or-401ks/#comment-409 Jeff Sun, 20 Apr 2008 04:36:59 +0000 http://www.wisemoneydecisions.com/2008/04/05/my-way-of-choosing-between-traditional-and-roth-retirement-accounts-either-iras-or-401ks/#comment-409 Jonathan: I hope it comes to fruition too! You're right there will be some complicating factors I'll have to adjust for. I suspect social security will be small enough that it won't foil my scheme. Good catch on the IRA contribution limit for 2008. I was writing from the perspective of a procrastinator that hadn't yet made a 2007 IRA contribution. :) Thanks for your comment. Jonathan:

I hope it comes to fruition too! You’re right there will be some complicating factors I’ll have to adjust for. I suspect social security will be small enough that it won’t foil my scheme.

Good catch on the IRA contribution limit for 2008. I was writing from the perspective of a procrastinator that hadn’t yet made a 2007 IRA contribution. :)

Thanks for your comment.

]]> By: Jonathan http://www.wisemoneydecisions.com/2008/04/05/my-way-of-choosing-between-traditional-and-roth-retirement-accounts-either-iras-or-401ks/#comment-401 Jonathan Sat, 19 Apr 2008 11:56:49 +0000 http://www.wisemoneydecisions.com/2008/04/05/my-way-of-choosing-between-traditional-and-roth-retirement-accounts-either-iras-or-401ks/#comment-401 Good thoughts, I hope it comes to fruition. :) Some other things that might complicate a scenario are Social Security income, and if you have or choose to buy an annuity. I am actually considering partial annuitization since I don't want to run out of money. Also, for 2008 I believe you can put $5k into a Roth IRA. Good thoughts, I hope it comes to fruition. :) Some other things that might complicate a scenario are Social Security income, and if you have or choose to buy an annuity. I am actually considering partial annuitization since I don’t want to run out of money.

Also, for 2008 I believe you can put $5k into a Roth IRA.

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