Most people are in a lower tax bracket after they retire. If they don't have investments or tsp they will
usually have less than half the money coming in as when they were working. Investment dividends and
capital gains are taxed at a lower rate than wages.
Sent: Sunday, February 26, 2017 9:01 AM
To: TSP_Strategy@yahoogroups.com
Subject: RE: [TSP_Strategy] Re: S fund
It almost is. Very few people take the current tax savings and invest that amount too. Most people pick a percentage and leave it at that. Also there is still a tax break for just retirement savings when you file each year. Also given the fact that most people will be in a higher tax bracket when they retire than they are now, even if they did invest the extra from the tax deferment, the extra amount in their accounts at retirement will be mitigated by the amount paid in income tax.
It is worth researching and making an informed decision based on your personal circumstances, but for most situations, Roth is the best option.
Posted by: del brett <bretdelman@msn.com>
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