Comments on: Dave Ramsey’s Step #4: A Visual Guide to Saving 15% for Retirement in a Roth 401(k) http://www.doughroller.net/retirement-planning/dave-ramseys-step-4-a-visual-guide-to-saving-15-for-retirement-in-a-roth-401k/ Money Management and Personal Finance | The Dough Roller Mon, 13 Feb 2012 05:44:53 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Bruce http://www.doughroller.net/retirement-planning/dave-ramseys-step-4-a-visual-guide-to-saving-15-for-retirement-in-a-roth-401k/comment-page-1/#comment-58903 Bruce Tue, 27 Dec 2011 01:30:21 +0000 http://www.doughroller.net/2008/03/03/dave-ramseys-step-4-a-visual-guide-to-saving-15-for-retirement-in-a-roth-401k/#comment-58903 The analysis is flawed. Assuming equivalent contributions to a Roth and an Roth IRA both will yield the same dollars in the future - assuming the tax rate stays the same. For example, saving 20,000 per year in a Roth IRA account savings account is equivalent to saving 15,000 in a Roth after tax account. Both will cost 20,000 net of taxes. At the end of any time period or interest rate assumption the two will yield the same after tax balances. Basic math. Any calculation that yields different results has been artificially tilted in favor of one account or the other. Bottom line: the same dollars out of your pocket today yields the same dollars back in the future. The only way that is not true is if you assume different tax rates in the future. The analysis is flawed. Assuming equivalent contributions to a Roth and an Roth IRA both will yield the same dollars in the future – assuming the tax rate stays the same. For example, saving 20,000 per year in a Roth IRA account savings account is equivalent to saving 15,000 in a Roth after tax account. Both will cost 20,000 net of taxes. At the end of any time period or interest rate assumption the two will yield the same after tax balances. Basic math. Any calculation that yields different results has been artificially tilted in favor of one account or the other. Bottom line: the same dollars out of your pocket today yields the same dollars back in the future. The only way that is not true is if you assume different tax rates in the future.

]]> By: jay http://www.doughroller.net/retirement-planning/dave-ramseys-step-4-a-visual-guide-to-saving-15-for-retirement-in-a-roth-401k/comment-page-1/#comment-47858 jay Fri, 14 Oct 2011 15:32:00 +0000 http://www.doughroller.net/2008/03/03/dave-ramseys-step-4-a-visual-guide-to-saving-15-for-retirement-in-a-roth-401k/#comment-47858 I can't even average 10% for 2 years. My 5 year average is something like 1-2% ROI. It's terrible, I don't know what to do. I can’t even average 10% for 2 years. My 5 year average is something like 1-2% ROI. It’s terrible, I don’t know what to do.

]]> By: Scott http://www.doughroller.net/retirement-planning/dave-ramseys-step-4-a-visual-guide-to-saving-15-for-retirement-in-a-roth-401k/comment-page-1/#comment-35687 Scott Fri, 10 Jun 2011 13:00:01 +0000 http://www.doughroller.net/2008/03/03/dave-ramseys-step-4-a-visual-guide-to-saving-15-for-retirement-in-a-roth-401k/#comment-35687 Agree with gb, most do not make 100k for 35 years unless your are selling books to people who can't plan for their future (rolling my eyes). THE PART THAT REALLY MAKES THIS SILLY IS THERE IS NO WAY YOU CAN AVERAGE 10% FOR 30 YEARS. Sorry, this is dangerous thinking. People will make poor choices based upon fiction. Roth decisions are made because of future tax brackets, and that is determined (in part) by how much your investments make, 10 percent is a dangerous presumption. This should be removed. Agree with gb, most do not make 100k for 35 years unless your are selling books to people who can’t plan for their future (rolling my eyes). THE PART THAT REALLY MAKES THIS SILLY IS THERE IS NO WAY YOU CAN AVERAGE 10% FOR 30 YEARS. Sorry, this is dangerous thinking. People will make poor choices based upon fiction. Roth decisions are made because of future tax brackets, and that is determined (in part) by how much your investments make, 10 percent is a dangerous presumption. This should be removed.

]]> By: Michael http://www.doughroller.net/retirement-planning/dave-ramseys-step-4-a-visual-guide-to-saving-15-for-retirement-in-a-roth-401k/comment-page-1/#comment-31853 Michael Sun, 24 Apr 2011 05:13:05 +0000 http://www.doughroller.net/2008/03/03/dave-ramseys-step-4-a-visual-guide-to-saving-15-for-retirement-in-a-roth-401k/#comment-31853 Me to... turned 30 this past March. I love to invest and made the mistake of liquidating stocks for a business instead of looking for the money elsewhere. I feel the impact even now becuase i started the portfolio in the gutter of 08. I would be significantly great right now. ;0( learn from your mistakes. Me to… turned 30 this past March. I love to invest and made the mistake of liquidating stocks for a business instead of looking for the money elsewhere. I feel the impact even now becuase i started the portfolio in the gutter of 08. I would be significantly great right now. ;0( learn from your mistakes.

]]> By: Michael http://www.doughroller.net/retirement-planning/dave-ramseys-step-4-a-visual-guide-to-saving-15-for-retirement-in-a-roth-401k/comment-page-1/#comment-31852 Michael Sun, 24 Apr 2011 05:09:28 +0000 http://www.doughroller.net/2008/03/03/dave-ramseys-step-4-a-visual-guide-to-saving-15-for-retirement-in-a-roth-401k/#comment-31852 I am the same situation. I don't see a benefit to putting money into a roth or trad IRA becuase my account says i can't. Ex becuase of my current 401K and level of income. What other options are there??? I am looking into single investor accounts for Mutual Funds, ETFs, etc. Thanks for the help. BR Mike I am the same situation. I don’t see a benefit to putting money into a roth or trad IRA becuase my account says i can’t. Ex becuase of my current 401K and level of income. What other options are there??? I am looking into single investor accounts for Mutual Funds, ETFs, etc.

Thanks for the help.

BR
Mike

]]> By: WWCD http://www.doughroller.net/retirement-planning/dave-ramseys-step-4-a-visual-guide-to-saving-15-for-retirement-in-a-roth-401k/comment-page-1/#comment-30971 WWCD Sun, 03 Apr 2011 02:09:41 +0000 http://www.doughroller.net/2008/03/03/dave-ramseys-step-4-a-visual-guide-to-saving-15-for-retirement-in-a-roth-401k/#comment-30971 :::timidly raises hand::: :::timidly raises hand:::

]]> By: GB http://www.doughroller.net/retirement-planning/dave-ramseys-step-4-a-visual-guide-to-saving-15-for-retirement-in-a-roth-401k/comment-page-1/#comment-30584 GB Mon, 21 Mar 2011 21:32:37 +0000 http://www.doughroller.net/2008/03/03/dave-ramseys-step-4-a-visual-guide-to-saving-15-for-retirement-in-a-roth-401k/#comment-30584 I like Ramsey but these numbers are totally unrealistic. Who is making 100k for 35 years? The graphs assume you are making 100k salary for 35 years...meaning you start saving 15k a year at 30. How may 30 year olds are making a 100k? I like Ramsey but these numbers are totally unrealistic. Who is making 100k for 35 years? The graphs assume you are making 100k salary for 35 years…meaning you start saving 15k a year at 30. How may 30 year olds are making a 100k?

]]> By: A Review of Dave Ramsey’s Baby Steps To Financial Freedom | What can I Write Off My Taxes | IRS http://www.doughroller.net/retirement-planning/dave-ramseys-step-4-a-visual-guide-to-saving-15-for-retirement-in-a-roth-401k/comment-page-1/#comment-30508 A Review of Dave Ramsey’s Baby Steps To Financial Freedom | What can I Write Off My Taxes | IRS Sat, 19 Mar 2011 19:33:23 +0000 http://www.doughroller.net/2008/03/03/dave-ramseys-step-4-a-visual-guide-to-saving-15-for-retirement-in-a-roth-401k/#comment-30508 [...] Dave Ramsey’s Step #4: A Visual Guide to Saving 15% for Retirement in a Roth 401(k) at The Dough Roller [...] [...] Dave Ramsey’s Step #4: A Visual Guide to Saving 15% for Retirement in a Roth 401(k) at The Dough Roller [...]

]]> By: Dianne http://www.doughroller.net/retirement-planning/dave-ramseys-step-4-a-visual-guide-to-saving-15-for-retirement-in-a-roth-401k/comment-page-1/#comment-30027 Dianne Tue, 08 Mar 2011 16:53:17 +0000 http://www.doughroller.net/2008/03/03/dave-ramseys-step-4-a-visual-guide-to-saving-15-for-retirement-in-a-roth-401k/#comment-30027 I am 60 and have $335,000 invested of which $234,000 is in a ROTH IRA and the balance in a 401B. If I retire at 62, approximately how much monthly income can I expect between these two investments? Thank-you I am 60 and have $335,000 invested of which $234,000 is in a ROTH IRA and the balance in a 401B. If I retire at 62, approximately how much monthly income can I expect between these two investments?

Thank-you

]]> By: Rules to Live By #3! Stop Wasting Time « Edwardlife: Behind the Scenes http://www.doughroller.net/retirement-planning/dave-ramseys-step-4-a-visual-guide-to-saving-15-for-retirement-in-a-roth-401k/comment-page-1/#comment-26271 Rules to Live By #3! Stop Wasting Time « Edwardlife: Behind the Scenes Wed, 17 Nov 2010 19:43:32 +0000 http://www.doughroller.net/2008/03/03/dave-ramseys-step-4-a-visual-guide-to-saving-15-for-retirement-in-a-roth-401k/#comment-26271 [...] If you want more detailed breakdown of finances, Roth IRAs, 401Ks and more, you really need to read this in more [...] [...] If you want more detailed breakdown of finances, Roth IRAs, 401Ks and more, you really need to read this in more [...]

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