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401(k) employer match

As I said, I did the conversions in a year when I was unemployed.

(The best financial advice I ever got was to save up 6 months worth of living expenses. That was not so hard to do, once I decided to do it, and it has done *wonderful* things for my peace of mind and financial security.)

Also, in professions with large organizations where senior people set the salaries for everyone, they usually set their salaries high relative to others. Examples include attorneys in large firms, university professors, physicians in group practices or hospital networks, etc. Then there is the common pattern of moving up from general staff to management.

I am aware that in some professions the pattern is different, with the highest salaries expected in mid-career.

Think about it. The Roth costs more up front, which means more money is devoted to saving rather than being spent on coffee.

If Roth IRAs become taxable in future, I figure all financial bets are off, so no point worrying about it now.

Una

Reply to
Una
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University professors really don't get paid that much. In just about all businesses senior people set the salaries. Still most people make much more money at 40 then 70.

In *most* lines professions the 70 year olds are making much less than the 40 year olds. Hell there but a few 70 year old CEOs but tons of 40 year olds. IOW there are 70 year olds that work, but they generally are not the CEO or the attorney - they're plain folk.

Yes but it's not like you're putting away millions of dollars right now. Besides your statement above is awkward at best if not confusing...

That's the spirit!

Reply to
Andrew DeFaria

True. Nonetheless, junior faculty (who can spent 10 years as graduate students and postdocs and adjunct slaves before they ever get onto the "tenure track") get paid even less.

Unionized professions are another example.

Is that a fact? Where did you get it?

What most people make is irrelevant to me in making my financial plan; what matters to me is what I expect in my own future. I expect that I will be working still at 70 *and* earning more than I do now (adjusted for inflation, of course).

Finally, Roth IRAs and similar aren't very appealing for rich people; they are life savers for ordinary earners who want to save, not spend.

Una wrote:

I think if I were putting away millions I would not bother with IRAs.

Someone who does waste time worrying which IRA is concerned with how to make the most of (now) $3000 per year. You can take $3000 and put it into a conventional IRA, or you can take $3000 * 1.28 (assuming a

28% tax bracket) = $3840 and put it into a Roth IRA. I assume I will pay plenty of income tax, it's just a question of now or later. I have some reason to prefer to pay it now.

Una

Reply to
Una

School of hard knocks! Face it, of the say 1000 people working at a business there is only 1 CEO and a few others on the top. This is just plain common sense. Of the 900 other employees how many do you think will funnel up to the top echelon of the company? The answer is not many. It's like hitting it big as an actor, musician or sports star. Many, many try. Few make it. And you didn't know this?

While what happens to you in particular is obviously of paramount importance, ignoring the usual trends in society, assuming you are above that is both elitist and foolish! It's like going to the black jack table and saying "I don't care what everybody else does or how the cards usually fall, what the odds are or whatever - I just care about what the next card will be for me". I've been to the black jack table many times. People who play like you loose all your money fast!

Is that a fact? Where did *you* get it?

Then you'd be a fool fer sure. It's a way to get more return on your money. Why would you give that up?

First off, last I checked it's been $4000 for a few years now. Secondly if you're married you can put away double. Thirdly, most people who have millions have businesses and there are many other avenues for putting even more. For example, through my business I can put 25% of my earnings away.

Sounds to me like you just don't know that much about this...

Reply to
Andrew DeFaria

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