I’m not at all sure why Dave would recommend spending 25,000 dollars in taxes for the privilege of owning a Roth vs traditional IRA. Just start a Roth, while continuing to collect the 2,000 dollar deduction on the traditional if you can afford the contribution to both.
There are a lot of issues using the Governments rules of investing which are not necessarily in your interest. No pun intended. Speaking as one now forced to take a minimum distribution from my IRA which I roll into a Roth because at the moment I don’t need the distribution for living expenses.
The idea is that taxes will likely go up, pay the taxes now and enjoy a tax free retirement stream from the Roth.
However, we can’t rule out the possibility that Roth income gets taxed in some form in the future, because liberals can’t stand the idea of tax free retirement income. Maybe transaction taxes if not outright confiscation.
Your IRA may not be your own for much longer. Congress has held hearings on how to help people “protect” thier IRA’s and 401’s They decided that stocks, mutual funds, and other investment vehicles were just too dangerous for your average person saving for retirement. What they want to do, is issue people bonds, government bonds. The kind where they promise you a set return of say, 3%. They will then take all that dangerous cash out of your accounts and put it into the treasury.
Politicians around money are like crackheads around crack. They can and will find a way to save you from losing all your money to “wall street” or the “banksters” as they call them. You can see the seeds of distrust they are planting in the future generations minds about investing in such places and making the “fat cats” fatter. I’d say withing 20 years, or sooner if a financial crisis hits the US. Do you think the Chinese are going to mind being repaid from Americans’ retirement accounts? I don’t even think money is safe in Roths these days. Physical gold and silver are a good start, but shouldn’t be your only investment. Income producing properties, land, farm land, etc are excellent investments as well. Anything that can ride through the amazing inflation that is coming towards us. Hard assets, and yes even lead is an excellent investment.