Myths and Truths of IRA Investing

Caliendo, Frank; Lewis, W. Cris
October 2002
Journal of Financial Planning;Oct2002, Vol. 15 Issue 10, p86
Academic Journal
As a general rule, tax-advantaged saving vehicles, such as an IRA or a 401(k) program, will provide higher retirement benefits than will comparable investments in assets within a taxable plan. If funds are saved only under the IRA umbrella, the decision of whether to use a Roth or a traditional plan can be based on expectations about differences in the marginal tax rate between the accumulation and distribution periods. If the individual invests in both an IRA and a taxable asset, the Roth IRA/taxable asset combination generally will provide higher retirement income than will the traditional IRA/taxable asset combination.


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