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To: Don Lloyd who wrote (83816)	3/21/2001 10:18:04 PM
From: chic_hearne	Read Replies (3) \| Respond to of 436258

1. 401K with employer match 2. Roth IRA contributions 3. Partial Roth IRA conversions from traditional IRA using your available cash to pay the taxes on the conversions Don, Roth IRA's always seemed like a scam to me. The way I see it, the gov wants you to roll over so they get your money NOW. Here's my thinking on this. A Roth only makes sense if you will be in a HIGHER tax bracket when you withdraw. Of course, since taxes have been around they've only ever really went up. It seems to me that most people living in retirement will be in a LOWER bracket than they currently are when working. In this case, you lose out with a Roth. Example, say you pay 50% now and will earn 10% year: Roth: 1 - 10K 2 - 11K 3 - 12.1K 4 - 13.31K 5 - 14.641K No taxes, you keep $14,641 Traditional Based on 50% tax, 10K Roth is equal to 20K traditional 1 - 20K 2 - 22K 3 - 24.2K 4 - 26.62K 5 - 29.281K Take your cash out and pay 50% tax and you're left $14,641 That said, I've contributed my $2K the last 4 years. I haven't put much thought into this so maybe my logic is wrong. It just seems the only difference is a bet on whether you will be paying more or less taxes when you retire. chic

To: Don Lloyd who wrote (83816)	3/21/2001 10:25:15 PM
From: JoanP	Read Replies (2) \| Respond to of 436258

Don - 1. 401-K: I'm self-employed. 2. Roth IRA: Fully funded each year. 3. Regular IRA: No longer funding this (see #2). Cash balance; no equities at present (earning 2.8% interest!!!) No dependents. Mortgage is my only deduction. One concern, however, is that my CMA is only FDIC insured to $100,000.00. My cash exceeds this limit at present. Prepaying the mortgage would reduce the CMA balance to fully insured levels. CMA yield: 5.16% APR. Where would you go from here? Thanks. Joan