Hello, whinabbers, my name is Jesse Meekham, and this is podcast number 77 for you need a budget,

where we teach you four rules to help you stop living paycheck to paycheck, get out of debt and save more money.

Always wanting to save more money. Today I want to end the debate that is

incessant when it comes to traditional or Roth IRA? Some people say

IRA, I can't do that for some reason. I got I'm like the guy that says

NASA for the NASA situation. NASA, NASA, IRA, IRA, IRA, I'm going with IRA. And if you don't like that, we're going to be talking

about it a lot, so you may want to change the channel. But people debate constantly difference between Roth and traditional IRA.

They look and say, well, if you deposit, you know, if you invest in a Roth IRA,

you pay tax on that money that you invest now.

And then it grows tax free.

And then when you withdraw the money, it's all tax free.

The investment you put in initially, because you already paid tax on at the beginning and the growth that that investment experienced while riding around in that Roth investment vehicle.

On the flip side, the traditional IRA is a tax-deferred vehicle in which your investments

right around.

So you would say, well, I'm going to invest that money and you deduct that money from

your tax on your 1040 for that year saving yourself some taxes that you would have otherwise definitely paid.

Then that money also grows tax-free until you withdraw it, at which point you pay money on the entire withdrawal, what you deposited or invested originally,

that was deferred from taxes, and then the growth that you had experienced that was also deferred.

Now, everyone would say well naturally the Roth is better

because the taxes or the growth isn't taxed but that's not mathematically accurate. If I were to use really, really

simple math, I better get my calculator out for this one, follow along. Let's say that you

were only going to contribute a thousand dollars to your

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