What AIG, Lehman and Fannie Mae Mean To You

The following is excerpted from What Just Happened To AIG, And What It Means To You

Regarding IRAs, 401ks, Deferred Compensation and Profit Sharing Retirement Plans

IF the world central banks insist on bailing out the bad capital, they will run gigantic deficits. They will eventually be forced to raise taxes. It’s impossible. This is one reason we have been talking about the idea to subscribers that maybe tax deferred savings are not quite what they are cracked up to be.

Basically, when the central banks and each nation realize they are going insolvent too, they will raise taxes on those ‘tax deferred’ accounts by the time you want to pull out the money. So, I’m fairly sure that you’re going to pay a lot more taxes on that pile of money than you think. If the world economy was not collapsing, then that would not be the case. But it is the case.

********************************************************************************

I've been shouting this for years. ( http://tannerinvestments.blogspot.com/2007/10/dont-put-too-much-in-your-401k.html )

It's good to hear somebody else finally figured this out too!

I'd much rather pay my taxes now and put my money in a Roth IRA and let is triple or quadruple between now and retirement and pay no taxes then. That's a no brainer.

Tax deferred accounts are a sucker bet. Don't let em fool you.