Investing General Discussion

Fogel said:

Who the fuck writes these articles, and do they actually get payed? What investor/trader was really standing around going "Oh shit, Biden had a primary win, buy buy buy!"

Dow, S&P finish 4% higher as Wall Street warms to surprise Fed rate cuts, Biden campaign momentum

U.S. stocks rebounded sharply Wednesday, warming finally to the Federal Reserve’s surprise interest rate cut and support from other central banks, as well as...

www.marketwatch.com

Click to expand...

I think the idea is more "Bernie is losing" than "Biden is winning!"

When you have a presidential candidate who, economically speaking, scares the shit out of 80% of the country anyone else starting to beat him is "good news for the markets"

I love WallStreetBets.

This is the last dying breath before dow 19k

Gravel said:

Unless you're expecting to be in a higher bracket, which is unlikely, a Traditional is a better fit. Since you're currently employed, and saving enough to actually have, y'know, savings, you're likely earning higher than you will be drawing in retirement.

The only caveat is the idea that we get a Bernie Sanders that raises tax rates exorbitantly on middle class incomes (which honestly, wasn't a concern previously but is becoming more likely now), in which you could expect higher tax brackets. But by this same token, that kind of overreaching government will also likely raid Roths and you're screwed in that scenario anyway.

Click to expand...

I don't think it's as simple as one is simply better than the other. Realistically, you'll want assets in both buckets in retirement, so you can draw your "standard" income out of your taxable assets to try and keep that income in a lower bracket with another bucket for more significant expenditures (crazy travel year, raising money to gift to children/grandchildren for college, etc) without pushing that distribution into a higher tax bracket. I also don't think it's unreasonable to think taxes in general will be higher in 20-30 years given the deficit spending and ballooning debt levels we're seeing even with a strong economy, to say nothing of what will happen when all the high income/tax boomers retire and sit on their money for years. No one really knows what the situation will be down the road, so it's likely prudent to hedge a bit and have assets in both traditional and Roth between 401(k) and IRA's.