ROTH vs Traditional IRA 💰 Dave Ramsey ADVICE #wealth #finance #daveramsey
Related Story
10 comments
@Fjjfuffnr244
What the? Every legit financial person, mathematician, and economist listening to this probably choked. I think Dave does a wonderful life coaching for people like him. But he is using financially and mathematically flawed logic to figure out what only HE seems to know and everyone else is wrong. I’m not gonna call him a moron, but jeez, this is an irresponsible statement at best. I know working teenagers who can spot where his logic went off the rails.
@someguy1994
Except a 401k is pre tax alongside company match, So assuming it's an even match, half of that money was contributed by your employer. so that's 48k Now you have to pay taxes on that $48k, so if it's say 20%, that's an additional roughly $10k lost, which puts you at only contributing about $38k instead of that $96k.
That's roughly 40% of that 2.5 million or 1 million left over. Acting like contributions to a standard 401k and a roth are equivalent at the point of contribution is disingenuous and another example of why Ramsey gives good basic advice about getting out of debt, but after that find someone else.
@hunterfg09
Isnt the idea of the traditional that you can put more money in earlier so it grows faster? So you end up putting in 225 a month instead of 200 post tax.
@majorwvufan
I dont know why people are so negative in these comments. You can literally do the math. Yes, take a company match (Dave says that too), but $1 to roth is better than 1$ traditional.