Quote:
Originally Posted by JSH
I do think people get way to wrapped up in traditional vs roth IRAs. There is no difference in taxes paid between the two if the tax rate stays the same. So really you are betting on whether your tax rate is lower today vs when you take the money out decades from now.
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My assumption is that tax rates will increase over time, with the government funding more things that we used to privately be responsible for. There's zero chance we don't have at least single-payer health insurance by the time I retire. That money has got to come from somewhere, and tax rates will be higher in the future.
... on a tangent subject, I have been thinking a little about being a stay at home parent. My wife and I have almost identical income which has us paying more in taxes than most. If I stayed home, I'd eliminate child care expenses, and have small amounts of time to pursue side interests or simply to keep up with repairs and improvements to the 2 houses we own.
I'll have to run some numbers to see what staying home would look like. I'd probably hire someone to open a daycare here to defray childcare expenses and give me time to pursue business ideas.