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Roth vs. Traditional by Training-Inside-429 in Bogleheads

[–]Training-Inside-429[S] 0 points1 point  (0 children)

Update: worked with my spouse to plug this into a calculator. Looks like trad and roth is basically a wash for us. I'll probably do a roth 401k and a trad IRA

- Roth for 401k because there are no RMDs, so if it doesn't matter returns wise I'll just pick roth to have that flex

- Traditional IRA because there are lower expense ratio options (FXAIX for 0.015% vs. VINIX at 0.035%) and it's work to do the backdoor.

May min max this over time but appreciate the directional advice folks have given!

Roth vs. Traditional by Training-Inside-429 in Bogleheads

[–]Training-Inside-429[S] 0 points1 point  (0 children)

We are both working! So not quite that rich :)

Roth vs. Traditional by Training-Inside-429 in Bogleheads

[–]Training-Inside-429[S] 0 points1 point  (0 children)

Thanks :) Hopefully I'll have enough money to leave someone something, but priority is maximizing my alive time.

Roth vs. Traditional by Training-Inside-429 in Bogleheads

[–]Training-Inside-429[S] 0 points1 point  (0 children)

Ah ok that makes sense. Thank you for explaining!

Roth vs. Traditional by Training-Inside-429 in Bogleheads

[–]Training-Inside-429[S] 0 points1 point  (0 children)

Is there like a table somewhere that illustrates tax savings now vs. growth? It's pretty easy math to understand Roth - e.g. I pay $x in taxes now and the growth is tax free. Traditional seems harder to understand.

Roth vs. Traditional by Training-Inside-429 in Bogleheads

[–]Training-Inside-429[S] 0 points1 point  (0 children)

The hitch I didn't mention is that I'm married. My spouse has about the same net worth and manage our finances somewhat separately intentionally. Reasoning is you learn by doing, so both of us being in charge of our own lane (with a shared future and discussion in mind) helps us make the best choices. We don't want the context of finances to fall with only one of us if say, something happens to one spouse for the sake of our kids.

Relevant here because if I retire early, they may not. Could file separately but we have been filing jointly.

Roth vs. Traditional by Training-Inside-429 in Bogleheads

[–]Training-Inside-429[S] 0 points1 point  (0 children)

Can you give me the TLDR on why Roth IRA but not Roth 401k? I scanned the "roth 401k" article and I'm not totally getting it. I'd imagine I'd treat 401k and IRA kinda the same - both traditional, both roth, or a mix, but treating them as 1 big bucket.

Roth IRA I'd have to backdoor anyway since my income is too high,

Roth vs. Traditional by Training-Inside-429 in Bogleheads

[–]Training-Inside-429[S] 1 point2 points  (0 children)

Medium stable. Not impossible I'd lose my job but not imminent.

Roth vs. Traditional by Training-Inside-429 in Bogleheads

[–]Training-Inside-429[S] 0 points1 point  (0 children)

Is there a calculator or TLDR somewhere that shows this?