Contributions to a Roth IRA are not tax-deductible and early withdrawals are both taxed and penalized. You don’t just pay taxes as normal income when you take an early withdrawal from a 401k they also tack on a 10% penalty making such investments unusually risky.
Untaxed capital gains on the other hand is just a free zero interest loan.
Anyway, having stocks is irrelevant here. What matters is for tax burden is what percentage of people’s income comes from capital gains.
Untaxed capital gains on the other hand is just a free zero interest loan.
Anyway, having stocks is irrelevant here. What matters is for tax burden is what percentage of people’s income comes from capital gains.