for those that trade in a retirement account, doesnt the roth make the most sense. I know you can only contribute up to 3000 a year but all gains are tax free. If you wan to withdraw its only a 10 % penalty, as opposed to a 20% cap gains tax or worse if its a short term trade. Any thoughts.
Partly. Up to age 70 & 1/2, the investment potential and withdrawal income tax potential is exactly the same as the regular IRA when measured by "time value of money". The Roth was mostly a Gummint ruse to suck people into paying taxes with some shallow promise of future benefit.
that may be true but you can put 3000 into a roth and trade it up to millions and not pay any tax. what other vehicle lets you do that?
My question is why? Let's say that you make $100,000 in a year, don't you want to spend some of it? Wouldn't you have bills to pay?