Roth IRAs/401ks Better?
I told Ham o' Bone years ago that our 401k accounts could all disappear tomorrow given the "house of cards" fragility of the global economy. Specifically I was thinking that after observing how the fall of an obscure currency in southeast Asia almost brought the world markets to their collective knees. Since then, obviously, nothing has led me to believe otherwise.
But another variable I hadn't anticipated was that because so few people fund 401ks in a serious way - I've heard the average balance is woefully inadequate for retirement - that there is not going to be a big enough voting constituency to protect them from the government coffers. Will 401ks get taxed at 75-80% upon withdrawal? Should we fund Roth IRAs/401ks in which money goes in after tax? (Although if the government will sanction the killing of the unborn, what's to stop them from breaking a promise involving money?)
To quote the old line: government will go where the money is. In thirty years, when there is widespread poverty due to the failure of Social Security and pensions, they'll be coming after those few folks who did save. So spend it now while you got it! Buy that Kindle! Smoke a fine cigar! And support your favorite charities before the government takes it and spends it on Planned Parenthood!
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