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getting started with investing-- Roth vs Traditional IRA

post #1 of 2
Thread Starter 

I'm trying to get a hold of our finances.

 

Dh has an optoin of either a traditional or Roth 401k at work, and we both have the option of Tradtional vs Roth IRA for earned income/spousal income contributions outside of work.

 

 

Is there a way (ie, easy formula that I can use) to tell which is better for us? I thought roth's were the hands down winner, but this site disagrees:

 

http://thefinancebuff.com/commutative-law-of-multiplication.html#respond

 

I expect that our income tax rate *will* be lower in retirement (as we won't be working, right?)

post #2 of 2

Honestly, there are arguments both ways.

 

In our household we're split.  DH takes advantage of his 401(k) program at work.  I don't have retirement programs available through my employer since I only work part time, and I'm choosing to save in a ROTH IRA.  So we have both pre-tax and post-tax money going into retirement savings vehicles.  Hopefully it will even out in the end?

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