Should You Prioritize Retirement Savings or Your Kids' College Savings?
Money Guy Show
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How to Choose Between a Roth and Pre-Tax 401k
When choosing between a Roth and pre-tax 401k, do you include the additional tax incurred by a Roth as part of your savings percentage? No. $1 saved in a pre-tax account is not the equivalent of $1 saved into a Roth account because you have to factor in the tax difference. If you are getting that granular on your savings rate, I would argue that you're majoring in the minors. It makes much more sense than making an arbitrage decision on higher tax or lower tax rates later.
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