I have been trying to do some digging in regards to the exact benefit of an IRA vs. taxable account. I know everyone defaults to think an IRA is automatically the best option, but I think it's more close than most people think and the added liquidity brings me peace of mind.
Assuming: Starting balance of 20k, age is close to 30, income over IRA contributions deduction limit, hitting Roth IRA limit within 5 years, portfolio would be three fund with ETFs (low turnover), all sales will be long term, rebalancing would be with each paycheck and not via selling, recurring investments of 1k biweekly. State is PA.
Pros: Liquidity, all resources and earning power in one account
Cons: After tax dollars, taxes on income/dividends, conducive to building a more simple portfolio to limit costs/taxes
Does anyone have any evidence of why an IRA would be so much better in this case? Not saying I am right (also very open minded), but I am generally curious as to how/why an IRA would be so much better.
Submitted April 10, 2020 at 09:57PM by eb8911 https://ift.tt/2yK5Ro6
