Your money, understood · Lesson 4 of 6
Two jars, one tax bill
Traditional: you put money in, your taxable income goes down now, and you pay tax when you take it out later. Roth: you pay tax first, put in what is left, and never pay tax on it again.
Same money, same growth, one tax bill. The whole question is whether your tax rate is higher now or later, and nobody knows the later one. That is why many people use both.
Opening your place…
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