I save in a qualified plan
2006-10-16 07:42:15 · 3 answers · asked by Anonymous in Business & Finance ➔ Investing
Great question!
Most people assume that because they’re retired, that they’ll be in a lower tax bracket at that time.
However, the answer depends on how well you invest your monies now and plan for that time.
If you save a decent amount of your salary and invest it well, you could well be in a higher bracket by the time you retire. How fun would that be!
Whether you invest in stocks or real estate or something else, if you can generate enough passive and other income, you can be in a higher bracket.
The key is to start planning now. Start educating yourself now on how to get from here to there!
Best of luck!
P.S. If you do think you'll be in a higher bracket by then, be sure you're contributing what you can to a ROTH IRA as well each year. These aftertax dollars you invest now, will grow tax free and be available to you taxfree (if the laws don't change) when you retire.
2006-10-16 08:32:38 · answer #1 · answered by Yada Yada Yada 7 · 1⤊ 0⤋
Whether you will be in a higher or lower tax bracket will depends on the income you will have, not on the percentage you save. 100% of nothing is nothing.
2006-10-16 14:50:59 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Hedge your bets & diversify (i.e. save money in both a qualified retirement plan AND in a non qualified investment account).
2006-10-16 21:41:47 · answer #3 · answered by derek 4 · 0⤊ 0⤋