It’s a decision that pretty much anyone saving for retirement faces: should you use a Roth account or a traditional account? The author of today’s article argues that more people should probably be using traditional accounts, but states that “Before you can understand why it likely makes more sense to use a traditional retirement account versus a Roth account, you must first understand the difference between marginal tax rates and effective tax rates.” For more – including the exceptions when the author believes people may be better off using a Roth – CLICK HERE.
Retirement Investing
Early Retirement Strategy: Forget FIRE, Take A Pivot?
When it comes to the FIRE (Financial Independence Retire Early) movement, the author of today’s article argues that it’s “akin to the headlines on magazine covers like ‘Flat Abs in 28 Days!’ The techniques may still be helpful, but the results can be overblown.” Instead, he advocates in favor of a different strategy which involves becoming financially comfortable (rather than independent) and “taking a pivot”. For more on this strategy – including why it may be significantly less risky than FIRE, and some of the challenges it may entail – CLICK HERE.