MW-HM435_found__ZG_20190628100723.jpg

Retirement Weekly: Think your income is too high to contribute to a Roth? Maybe not

This post was originally published on this site

The more you make, the more you need to save to have a chance of maintaining your lifestyle in retirement. Your savings rate is likely the number one factor in your ability to achieve your goals. Not market returns, not the economy.

Higher income earners often don’t increase their savings rate as their income goes up. They spend more and more. Then they get to retirement without enough saved to maintain the spending level they’ve become accustomed to.

Boost your savings rate

One sure way to increase your savings rate? Make after-tax contributions to a Roth IRA or 401(k) instead of pretax contributions to a traditional IRA or 401(k).

To continue reading, please subscribe. Already a Subscriber? Log in