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1. Why your 401k, 403B and Traditional IRA's suck Part TWO of 2
With even MORE math.
On Monday, I wrote abouat a client that is 25, makes about $40,000 a year and has been contributing $12,000 a year to her 403b.... the public employee equivalent of a 401k or IRA.
With even MORE math.
On Monday, I wrote abouat a client that is 25, makes about $40,000 a year and has been contributing $12,000 a year to her 403b.... the public employee equivalent of a 401k or IRA.
2. And what I pointed out was that at her current tax rate, she was 'saving' $1,957 a year in state and federal taxes,
BUT,
she would have a huge tax bill coming due on the money she deferred AND everything it made that would be in the hundreds of thousands of dollars.
BUT,
she would have a huge tax bill coming due on the money she deferred AND everything it made that would be in the hundreds of thousands of dollars.
3. And that is JUST on the money that she's already put in there, which is currently worth $50,000.
If you missed that thread, you can read it here:
If you missed that thread, you can read it here:
