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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host
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To: Greg Luke who wrote (2317)12/7/1997 10:30:00 PM
From: Investor2  Read Replies (3) of 42834
 
RE: "I am looking seriously into the Roth IRA as a way of investing for tax free returns."

I like the idea of the Roth IRA too. I really don't think of it as "tax free," since the money one puts into a Roth IRA is fully taxed as income before you invest it. A Roth IRA does, however, eliminate the double taxation common with an ordinary non-IRA investment. In a non-IRA stock investment, you first get taxed on your income, then you get taxed on the dividends and capital gains which were generated from already-taxed dollars.

It's funny how we've all become accustomed to this unfair double taxation. Now we think of single taxation, such as in a Roth IRA, as "tax free."

Best wishes,

I2

P.S. - I've also been thinking of converting my existing IRAs into Roth IRAs. My thoughts on this are that the tax rate may get much higher when the large Baby Boomer generation retires and starts taking benefits from the "welfare" system, rather than funding the system.

What do you think?
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