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Depending on how old you are, it’s not just a bet on future tax rates, but also a bet on *policy*
I’m 34 and expect to retire as a 1%-er. My hypothesis is that the income divide will come to a head in the next 25 years, and many benefits will be shut off for high income individuals (it already exists in many forms, e.g., estate tax).
Similar to how I view the likelihood of my receiving social security benefits as < 10%, I also believe they’ll end up taxing my Roth by the time I’m 60...
Partner at 34?! Holy shit, good job.
OP- do you live at home? How is 22% of your salary being saved?
What am I doing wrong?!
It’s not a salary question but a taxation question. What deductions do you have?
It partly depends how aggressively you invest. Nearly every calculator will say “go Roth”. I went 100% Roth bc it’s all post tax and my tax bracket will stay high and deductions aren’t relevant. Just make sure you get your 401K match. The Roth vs traditional math were less than 1% different when I modeled it, so I’d rather have the federal taxes out now, since that’s the more likely to change. (Some states still tax withdrawals on retirement...a whole other issue)