Discover the tips and strategies that will help you achieve your retirement goals.

I'm your host, James Canole, and this is the podcast dedicated to helping you retire well.

It all starts right here on Ready for Retirement. for retirement.

Hi, welcome back to another episode of Ready for Retirement.

I'm your host, James Knoll.

And we've got a topic today that a lot of people have a lot of questions about.

And that should I do a Roth or traditional 401k?

Now, this could also apply to Roth or traditional IRA. The question is essentially Roth money or traditional slash pre-tax money.

So today what we're going to learn about, today what we're going to cover is when does it make

sense to use Roth funds, whether it's in a 401k or Roth IRA? And when does it make sense to do a

traditional 401k or traditional IRA? and when does it make sense to do a traditional 401k or

traditional IRA? We'll talk through pros and cons of each and ultimately give you a framework that

will help you to make the decision of what works best for you and your own personal situation.

So let's just use a quick example to get started of what's the difference between Roth 401ks and traditional 401ks.

And by the way, I'm just going to use the term 401k for this, but the same exact thing applies

to IRAs. So when I say Roth 401k, you could easily substitute that with Roth IRA.

When I say traditional 401k, you could easily substitute that with traditional IRA.

So just keep that in mind that these are interchangeable.

But let's look at how this works.

Let's assume that you make $100,000.

And let's assume that you're in the 25% combined tax bracket,

just a flat tax, just to use a nice, easy example.

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