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Originally Posted by skcin
I love Suze! I'm no expert, but I know she prefers Roth IRA's to conventional IRA's because although you pay taxes on it now, you do NOT pay taxes on your withdrawl from the Roth after retirement age.
A regular IRA is pretax, which is great right now BUT you will pay taxes when you withdraw - at the tax bracket you are in at THAT time, not at the time you contributed.
As far as the Roth vs. 401K, after you have reached your max (the company has maxxed their contribution), she sees no point in putting more $$$ in if they are no longer matching you.
I think. Someone correct me if I'm an idiot.
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You're right on the money there. She said this at her book talk in Boston earlier this year. Due to the performance of the stock market she changed her advice about maxing out your 401k contributions to only putting in what your employer matches.
I recently found out my employer matches nothing, but perhaps will match at its discretion after the end of the year. They used to have a really decent match but I didn't get into it before and it looks like I won't be getting into it now either.