17-01-2013, 10:55 PM
thanks for the responses guys. the difference is the taxes i guess.
the quesiton is really is it better to invest before tax dollar and get taxed on the exit? or to invest the after tax dollar? as specuvestor had pointed out.
yes, if you ran the numbers, it should be better to invest the before tax-dollar.
so after considering, the two real issues are the
1) uncertainty around the tax rates around withdrawal.
2) your death before you can withdraw. (50% of the balance is taxed at the marginal tax rate upon your withdrawal).
the quesiton is really is it better to invest before tax dollar and get taxed on the exit? or to invest the after tax dollar? as specuvestor had pointed out.
yes, if you ran the numbers, it should be better to invest the before tax-dollar.
so after considering, the two real issues are the
1) uncertainty around the tax rates around withdrawal.
2) your death before you can withdraw. (50% of the balance is taxed at the marginal tax rate upon your withdrawal).