Wonder what the tax rate will be when you finally get to cash in on your 401K! Does it make sense to defer paying taxes anymore?

If not- you just roll the money over into a Roth IRA- and in essence, you continue to defer paying taxes. Once you retire it is assumed that you'd be in a lower tax bracket, and therefor you will pay less in taxes. Does that make sense?

Why should you defer taxes? Because $100 earns more interest than $80 (assuming of course that you would have $100 in the same account, earning the same interest that the $80 would be.) When you defer taxes, basically what you are doing is using the money that you "owe" the Government to make a little bit of interest. So it's not that much when you talk about the difference between investing $80 and $100- but it does add up.

The amazing thing about interest is- if it's left untouched it compounds.So if you get to put $100 into an account that is tax differed and then on top of that you make 10% interest then next year you will be earning interest on $110. If you continue to make 10% interest instead of "earning" $10 this year, you'll actually make $11. If you keep it in the account long enough, after a few years, your interest will start earning more interest than your principle.

Talk to a financial adviser to see if it is worth it for you to defer paying taxes. For some people it actually isn't.

If not- you just roll the money over into a Roth IRA- and in essence, you continue to defer paying taxes. Once you retire it is assumed that you'd be in a lower tax bracket, and therefor you will pay less in taxes. Does that make sense?

Why should you defer taxes? Because $100 earns more interest than $80 (assuming of course that you would have $100 in the same account, earning the same interest that the $80 would be.) When you defer taxes, basically what you are doing is using the money that you "owe" the Government to make a little bit of interest. So it's not that much when you talk about the difference between investing $80 and $100- but it does add up.

The amazing thing about interest is- if it's left untouched it compounds.So if you get to put $100 into an account that is tax differed and then on top of that you make 10% interest then next year you will be earning interest on $110. If you continue to make 10% interest instead of "earning" $10 this year, you'll actually make $11. If you keep it in the account long enough, after a few years, your interest will start earning more interest than your principle.

Talk to a financial adviser to see if it is worth it for you to defer paying taxes. For some people it actually isn't...

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.