Pre-Tax Investments (Not Roth) Are The Best Choice For Building Wealth

Posted on March 3, 2018August 17, 2026 by MrGoGreenDollar

(Though it’s not required, it may be helpful to read my previous post about progressive taxes, before diving into this post.) The classic pre-tax (e.g. Traditional IRAs and 401(k)s) vs. Roth comparison usually goes something like this… AssumptionsInitial Investment = $10,000Tax Rate = 25%Total Investment Return = 900% (i.e. 10x) […]

Your Taxes May Be Lower Than You Think

Posted on February 25, 2018August 17, 2026 by MrGoGreenDollar

I recently had a discussion (debate) with a friend of mine comparing the benefits of pre-tax investments to those of Roth investments. I argued that, while there are many cases where Roth investing would be more advantageous/practical for the average person, pre-tax is usually the best choice mathematically. I presented […]