It’s one of the most hotly debated topics in personal finance…Roth or Traditional?
Some argue that the national debt almost guarantees higher taxes in the future and that you should choose Roth and pay your taxes now. Others argue that flexibility and low-earning retirement years should lead you to choose traditional. And of course, some “professionals” highlight that retirement accounts are a scam and you should be investing in their life insurance product to avoid taxes altogether…for the sake of this conversation, we are ignoring that one.
At the end of the day, we all know the correct answer…it depends. It wouldn’t be a controversial topic if there wasn’t nuance in the decision. Multiple factors make it a personalized decision for everyone.
In today’s episode, we dive deep into many of those factors to help you feel equipped to make this decision for your situation. To help me with this goal, I invited on my friend and CFP Rachael Camp.
Rachael recently appeared on the podcast in episode 143, so if you want to learn more about her story and her thoughts about work optionality, get that episode queued up.
In this conversation, we jump straight into it, debunking bad advice, sharing a rule of thumb to decide if Roth or Traditional is the right option for you, discuss how unique factors such as which state you live in, RMDs, and medical subsidies might impact your decision, and ultimately, a case for why this decision should be revisited every year.
So if you want to get deep into the weeds about Roth vs Traditional, this episode is for you. I hope you enjoy my conversation with the owner of Camp Wealth…Rachael Camp.
Key Takeaways:
- The math behind bad advice
- If taxes are bound to increase, how does that change our decision?
- A Roth or Traditional rule of thumb based on your tax bracket
- Changes in your life that might impact how you should be investing
- How and why to create flexibility in your retirement accounts
- A year-by-year approach to maximize your tax savings
More of Rachael:
YouTube: https://www.youtube.com/@CampWealth/videos
Website: https://www.rachaelcampwealth.com/
More of The Struggle is Real:
Find show notes and more at https://www.tsirpodcast.com/
Connect with Justin on LinkedIn: https://www.linkedin.com/in/justinleepeters/
