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Old 10-13-2008, 11:53 PM
MichaelG MichaelG is offline
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Default IRA or ROTH IRA?

IRA or ROTH IRA?
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Old 10-14-2008, 02:01 AM
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I think the best choice here depends alot on how much time you expect to pass before you draw on the funds. If you are looking at a short period before retirement it would make more sense to do a traditional IRA this is because you will gain more by having a substantial portion of the money that goes into the fund be money that you would have been paying out in taxes. If you are looking a a long peroid of time before you expect to draw on the funds then a Roth IRA makes more sense. I say this because you should have a much larger fund of money after say 30 years of compounding. If you go Roth then you have the opportunity to withdraw funds untaxed in retirement.

Of course other things play a role in the decision like your current personal tax rate but I believe that the length of compounding has a much greater role in this decision.
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