And also my tax preparer told me that It will also affect the amount of tax shelter if you have a mortgage if you put all your savings to Roth. He said what's the good of doing all that savings on taxes when you are old and full of sickness and may die sooner than your retirement to take advantage of Roth
The current zeitgeist is to lower, not raise, taxes. Remember that lower taxes equates to fewer subsidies for transportation, education, utilities, et al.
So, if you pay your taxes now (Roth), assuming they will be higher later, and instead, taxes are lower later, due to your lower income and possibly because the tax rate is still lower, it becomes a lose/lose for you. You lose now by paying more in taxes than those in Traditional You lose later because, while you won't be paying taxes at that time, you will be paying more in prices for goods and services.
Meanwhile those who pay less tax now, have the opportunity to not only receive untaxed compound returns (higher rate of returns than those in Roth) but also additional funds now which they may also put to work via other investments.
Posted by: sarah_oz@yahoo.com
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