redpill me on Roth IRAs. Are they better or worse than regular

>>1987449
The redpill is that stocks are a blue pilled investment vehicle. The best investments are not on the radar of the zero sum to market returns of the investment community.

But if you plan to be a wageslave until 59.5 years of age, buy VTI OR VOO. Diversifying is dumb as fuck. Usa will always be #1 and your investment horizon is long enough that volatility doesn't matter.

If you do decide to diversify like a peasant, put RIETs and Bonds into your Roth for optimal tax savings and keep stocks in your regular brokerage account.

Personally, I haven't even opened a Roth because I want to retire at 30, not 60+. Have far and above outperformed the market through my business (cloud computing services related).

Alternative investments > traditional almost everytime traditional investments are just a collection of alternative investments packaged and run down to market returns by investors.

>>1987449
For most people Roth v trad is kind of a wash. Sure, their are circumstances where one or the other may be a slam dunk but it's basically tax now or tax later. What your financefag said is true. It is not the last word on Roth. But is true that Roth money costs more since it's after tax. Now, you get to take the Roth earnings tax free if you are over 59.5, so that part is legit tax savings. That's the upside for Roth. If you start early you could have a big pile of tax free earnings when you retire. The other side of that is, if it were pretax you would have been able to invest more for the same total cost, or been able to boost your standard of living with the tax savings all those years. Renember we can't just live for retirement now.

Some things to consider

>roth money "costs more" but is more valuable dollar to dollar
This can be a wash, but if your goal is to maximize how much you are able to out in an it's or 401k Roth is going to be the way to go, since Roth and pretax dollar limits are the same

>tax later might (for most, likely will) be better than tax now
Every day I talk to people who think the advantage of Roth is that it will protect them from the inevitable tax increases they are going to face in the future. "Its not like the government has ever lowered taxes" they always say. This is of course completely incorrect. Taxes have tended to go up and down. Further, the big swings tend to be reserved for the higher brackets. It is NOT a correct assumption that tax rates will necessarily increase, especially for retirees, for whom a whole bunch of tax efficiencies exist. So when you are earning, especially in your earning prime, you will likely be in a higher tax bracket than in retirement. It might not make since to pay upfront taxes on Roth money when you can pay less in retirement. Also, if your accounts are your primary source of income you can structure your withdrawals to keep your taxes extra low.

>>1987493
what do you think about crypto in that case?

>>1987568
Thanks. It turns out, since I have a 401(k) at work (which I also contribute to) a contribution to a traditional IRA might not even be deductible.
https://www.irs.gov/retirement-plans/plan-participant-employee/2016-ira-contribution-and-deduction-limits-effect-of-modified-agi-on-deductible-contributions-if-you-are-covered-by-a-retirement-plan-at-work
So I guess at that point I may as well go with the Roth?

>>1987568
And one last thing

>for most people it's not clear cut, and whichever tax treatment is better is probably so only by a slight margin
So don't stress out about it. Roth v pretax is not going to make or break the avg joe. And remember you can do both so feel free to mix and match. Also alot if 401ks allow Roth contributions (with a much higher cont. Limit) so you can can do this all in your employer plan too.

>any analysis on which is better required predicting the future
If you are young, understanding which is really better required you accurately predict 30+ years if your career, plus 30 years of tax rule changes, market performance, inflation, ect. You can use our industries boiler plate figures for that, but it's still just a guess. So who knows. Just don't let Roth v pretax prevent you from pulling the trigger. Better to pick one and start rather than let the decision parallasis delay your starting.

>>1987587
Usually if your can't contribute to a trad, Roth is also out. I also doubt you are putting away enough in your 401k to hit the limit.

401k limits are way higher than Ira, plus no income caps (technically)

>>1987598
No. It's not that I can't contribute to it, it's that I wouldn't be able to claim it as a deduction on my tax return since I'm already getting tax-free income to my 401(k).