http://evolutionofwealth.com/2009/09/max-out-your-401k-math/ Helping People Find, Keep and Enjoy Their Money Mon, 30 Aug 2010 00:47:23 +0000 hourly 1 http://wordpress.org/?v=abc http://evolutionofwealth.com/2009/09/max-out-your-401k-math/comment-page-1/#comment-92 Evolution Of Wealth Sat, 26 Sep 2009 14:33:32 +0000 http://evolutionofwealth.com/?p=273#comment-92 So why do you think you will in a lower tax bracket in retirement? Are you just going to be living off of less money? Is that your goal? I think today people live off of less money, not because they want to but because they have to. When I retire I want to be able to golf or travel or just randomly buy the grandkids something or give money to the kids. I want the flexibility and options to be able to do this. So for me it is important to me to balance out or diversify the tax treatments of my retirement monies. The Roth 401k is a huge benefit in helping me do this I also believe that taxes are only going up and I don't like the way a Traditional 401k is passed on when I die. So why do you think you will in a lower tax bracket in retirement? Are you just going to be living off of less money? Is that your goal?
I think today people live off of less money, not because they want to but because they have to. When I retire I want to be able to golf or travel or just randomly buy the grandkids something or give money to the kids. I want the flexibility and options to be able to do this. So for me it is important to me to balance out or diversify the tax treatments of my retirement monies. The Roth 401k is a huge benefit in helping me do this
I also believe that taxes are only going up and I don’t like the way a Traditional 401k is passed on when I die.

]]> http://evolutionofwealth.com/2009/09/max-out-your-401k-math/comment-page-1/#comment-91 Jim Bauer Sat, 26 Sep 2009 14:10:25 +0000 http://evolutionofwealth.com/?p=273#comment-91 Ever since I first started hearing about this new Roth 401k deal I haven't liked it, and here's why. If you pay taxes on the back end (regular 401k) vs. at the front end (Roth 401k), while your principle may be larger simply by default, the amount of money paid in taxes would be greater than had you simply deferred the taxes. Part of this is because you are in a higher tax bracket working. In retirement when you begin withdrawing the funds your income will be less, making your tax bracket lower. Ever since I first started hearing about this new Roth 401k deal I haven’t liked it, and here’s why. If you pay taxes on the back end (regular 401k) vs. at the front end (Roth 401k), while your principle may be larger simply by default, the amount of money paid in taxes would be greater than had you simply deferred the taxes. Part of this is because you are in a higher tax bracket working. In retirement when you begin withdrawing the funds your income will be less, making your tax bracket lower.

]]> http://evolutionofwealth.com/2009/09/max-out-your-401k-math/comment-page-1/#comment-90 Twitter Trackbacks for Max Out Your 401k Math « Evolution of Wealth [evolutionofwealth.com] on Topsy.com Thu, 24 Sep 2009 13:20:48 +0000 http://evolutionofwealth.com/?p=273#comment-90 [...] Max Out Your 401k Math « Evolution of Wealth evolutionofwealth.com/2009/09/23/max-out-your-401k-math – view page – cached * RT @FiscalFizzle: RT @flexo: Please tip'd if you can - Report card for financial rules of thumb - http://bit.ly/PlXrd Cool analysis! 30 minutes ago * RT @lizweston: RT @marypilon: Breaking credit card news: Reps. Maloney & Frank will bump CARD Act from Feb 10 to Dec 09. http://bit.ly/Cs84V 1 hour ago * hat tips tonight go out to @lizweston @rwohlner @cjbowker @RetSav 11 hours ago * RT @RainMakerMaker: One week left to register for RainMaker Maker Webinar Series DM for discount code http://ow.ly/qpp3 or http://ow.ly/qt1F 14 hours ago — From the page [...] [...] Max Out Your 401k Math « Evolution of Wealth evolutionofwealth.com/2009/09/23/max-out-your-401k-math – view page – cached * RT @FiscalFizzle: RT @flexo: Please tip'd if you can – Report card for financial rules of thumb – http://bit.ly/PlXrd Cool analysis! 30 minutes ago * RT @lizweston: RT @marypilon: Breaking credit card news: Reps. Maloney & Frank will bump CARD Act from Feb 10 to Dec 09. http://bit.ly/Cs84V 1 hour ago * hat tips tonight go out to @lizweston @rwohlner @cjbowker @RetSav 11 hours ago * RT @RainMakerMaker: One week left to register for RainMaker Maker Webinar Series DM for discount code http://ow.ly/qpp3 or http://ow.ly/qt1F 14 hours ago — From the page [...]

]]>