are traditional contributions to IRA or 401ks stupid with the impending US bond crisis?

[Anonymous]

Lock in tax rates now or keep contributing to traditonal retirement vehicles even though the US is going to face an impending solvency crisis in the future due to BBB?

I mean, it's only a matter of time until they try to raid the trillions of dollars socked away in retirement accounts. One would logically predict huge tax increases on traditional 401k withdrawals in the future. Would it make sense to cut this risk by a lot by locking in tax rates now via Roth contributions for every regiment vehicle going forward? This is even under the current assumption you'll be in a lower tax brack in retirement than now.

[Anonymous]

If the US faces an insolvency crisis, I would think we’d print more money and it would result in inflation, which increases the value of most equities. Stocks are a good hedge against inflation.

I’m not sure there is an alternative to investing. Perhaps diversify internationally. If the US goes down then what’s the alternative?

Also be wary of relying on the media. GDP is forecasted to spike next quarter. While the media is all impending doom about the economy, that’s not really what the data, including corporate profits, are showing.

[Anonymous]

Who computes the GDP figure?

[Anonymous]

Anonymous wrote:Lock in tax rates now or keep contributing to traditonal retirement vehicles even though the US is going to face an impending solvency crisis in the future due to BBB?

I mean, it's only a matter of time until they try to raid the trillions of dollars socked away in retirement accounts. One would logically predict huge tax increases on traditional 401k withdrawals in the future. Would it make sense to cut this risk by a lot by locking in tax rates now via Roth contributions for every regiment vehicle going forward? This is even under the current assumption you'll be in a lower tax brack in retirement than now.

If you think they are going to raid retirement accounts, what makes you think a Roth is going to save you ? Double taxation is already a thing, and Congress can re-write the tax laws anytime they want, through means-testing or whatever.

Thats why I have stuck with the regular 401K, I want my tax break now, instead of some promise in future.

[Anonymous]

Anonymous wrote:Lock in tax rates now or keep contributing to traditonal retirement vehicles even though the US is going to face an impending solvency crisis in the future due to BBB?

I mean, it's only a matter of time until they try to raid the trillions of dollars socked away in retirement accounts. One would logically predict huge tax increases on traditional 401k withdrawals in the future. Would it make sense to cut this risk by a lot by locking in tax rates now via Roth contributions for every regiment vehicle going forward? This is even under the current assumption you'll be in a lower tax brack in retirement than now.

Yes, there's an impending solvency crisis in the normal sense. However, all it takes is for the US to engineer a recession worldwide to drop everyone's currency values and drive flight for safety into US treasuries. Happens without fail all the time.

Besides, any government would rather print more money rather than touch people's savings. Other countries don't have that choice.

[Anonymous]

Anonymous wrote:
Lock in tax rates now or keep contributing to traditonal retirement vehicles even though the US is going to face an impending solvency crisis in the future due to BBB?

I mean, it's only a matter of time until they try to raid the trillions of dollars socked away in retirement accounts. One would logically predict huge tax increases on traditional 401k withdrawals in the future. Would it make sense to cut this risk by a lot by locking in tax rates now via Roth contributions for every regiment vehicle going forward? This is even under the current assumption you'll be in a lower tax brack in retirement than now.


Yes, there's an impending solvency crisis in the normal sense. However, all it takes is for the US to engineer a recession worldwide to drop everyone's currency values and drive flight for safety into US treasuries. Happens without fail all the time.

Besides, any government would rather print more money rather than touch people's savings. Other countries don't have that choice.

That used to work before Trump.

[Anonymous]

Anonymous wrote:

Anonymous wrote:
Lock in tax rates now or keep contributing to traditonal retirement vehicles even though the US is going to face an impending solvency crisis in the future due to BBB?

I mean, it's only a matter of time until they try to raid the trillions of dollars socked away in retirement accounts. One would logically predict huge tax increases on traditional 401k withdrawals in the future. Would it make sense to cut this risk by a lot by locking in tax rates now via Roth contributions for every regiment vehicle going forward? This is even under the current assumption you'll be in a lower tax brack in retirement than now.


Yes, there's an impending solvency crisis in the normal sense. However, all it takes is for the US to engineer a recession worldwide to drop everyone's currency values and drive flight for safety into US treasuries. Happens without fail all the time.

Besides, any government would rather print more money rather than touch people's savings. Other countries don't have that choice.

That used to work before Trump.

It will always work..