Nerdly Talk

I just found this really great calculator over at Smart Money to help you choose between the different types of IRAs. Most people have an opinion about which is best but I couldn’t find anything that could really help me to figure out what was best for me. This calculator allows you to put in information about your age and current tax bracket. It then calculated where you will be dependent upon which type of IRA you choose. So now I am certain… even though I was pretty sure before… that a Roth is best for me since I will more than likely be in a higher tax bracket when I retire. Since you contribute after tax income, you are paying taxes on the money now and NOT at the time of your retirement when you will in theory be in a higher bracket. Now I just need to find $96 bucks a week to meet the $5k investment that’s allowed this year… yeah that’s the tougher part.