With inflation on an upswing and tax rates at historic lows. What are your thoughts on tax deferred vs taxable retirement contributions for young (<35) people?
With the caveat that everyone's situation is different, our default suggestion is to prioritize your tax-deferred contributions first - for most people, that's their 401k (or similar).
For people <35, we suggest taxable contributions using the Roth IRA until they earn too much to keep contributing. If it's good enough for Peter Thiel, it's good enough for you https://bit.ly/3xZ8cEW
After you're making too much, switch it to the traditional IRA. That priority - 401k, Roth, Traditional - should leave you pretty diversified from a tax perspective and give you options when you hit retirement.
Everyone's tax situation is different, so the suggestions above shouldn't be considered advice. We'd be happy to discuss your specific situation. Drop us an email at weeklyupside@gmail.com.
With inflation on an upswing and tax rates at historic lows. What are your thoughts on tax deferred vs taxable retirement contributions for young (<35) people?
With the caveat that everyone's situation is different, our default suggestion is to prioritize your tax-deferred contributions first - for most people, that's their 401k (or similar).
For people <35, we suggest taxable contributions using the Roth IRA until they earn too much to keep contributing. If it's good enough for Peter Thiel, it's good enough for you https://bit.ly/3xZ8cEW
After you're making too much, switch it to the traditional IRA. That priority - 401k, Roth, Traditional - should leave you pretty diversified from a tax perspective and give you options when you hit retirement.
Here's a good article from Investopedia that covers retirement contributions income limits and other considerations: https://www.investopedia.com/retirement/ira-contribution-limits/
Everyone's tax situation is different, so the suggestions above shouldn't be considered advice. We'd be happy to discuss your specific situation. Drop us an email at weeklyupside@gmail.com.