One of the biggest reasons I’ve been against contributing to a Roth IRA is my belief that most people won’t make more money in retirement than while working. As a result, they’re unlikely to pay a higher tax rate in retirement than during their working years.

This belief also assumes that tax rates will stay stable. Since 2009, when I first shared my views on Financial Samurai, tax rates have generally trended lower. Just as cutting Social Security benefits is political self-harm, campaigning to raise taxes isn’t a winning strategy for politicians seeking power.

Earning more money in retirement than during your working years requires effort, discipline, consistency, and a bit of good luck. Considering the current state of personal finances in America—which isn’t great—this scenario is unlikely for most people.

Intuitively, many people understand this. However, let’s dive into the numbers to get a clearer picture. I’ll also explore why

Keep reading this article on Financial Samurai.

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