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Strategies & Market Trends : Roth IRA ideas -- Ignore unavailable to you. Want to Upgrade?

To: Jim O'Hare who wrote (70)3/13/1998 9:40:00 AM
From: Mitch Aunger  Respond to of 388
 
Yes, you are missing something... something big!

<< If I took the money and put it in a Roth IRA I would have to pay ordinary income tax when I withdrew the funds after retirement.>>

NOT TRUE... The great thing about a ROTH is that you pay NO TAXES when you withdraw after 59.5!

AND there is NOTHING to say you can't open a SELF DIRECTED ROTH, and put your money in an S&P index fund or this Spider thing... then you have the BEST of BOTH worlds!

Granted, you have restrictions on removing funds from an IRA, but there are other advantages for the long run!

Good Luck, let me know if this isn't clear.

Mitch



To: Jim O'Hare who wrote (70)3/13/1998 10:21:00 AM
From: mod  Respond to of 388
 
<<If I took the money and put it in a Roth IRA I would have to pay ordinary income tax when I withdrew the funds after retirement.....Am I missing something?>>

Yup, you sure are. You never pay income taxes on Roth withdrawals, so you need to recompute your numbers, using a 0% tax on withdrawals. Should make the Roth look a lot better.

Dennis


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