Thursday, January 6, 2011
For Retirement Getting Taxed Now is Best
If you live in the United States you can see the turmoil the real estate crisis has caused. We are now in a recession with 9% unemployment and increasing costs for oil and natural resources.
The US budget deficit is over $14 trillion as of Dec 2010. Health care costs are skyrocketing even if insurance is provided by your employer. It is inevitable that we will face increasing taxes.
The solution to put your retirement $ in a non taxable account such as a Roth IRA or a Roth 401k. If your employer has a Roth 401k I envy you since mine does not have one yet.
The huge advantage is when you retire you will know exactly how much money you will get rather than guessing and paying a high tax rate in the future.