Everyone always tells you Roth accounts are better than traditional accounts.

Pay taxes today, put money in, let it grow tax-free, and one day that money comes out to you tax-free in retirement.

There's a beautiful thing about that.

But Roth accounts are not always the best.

There are many cases when the decision to put money into pre-tax accounts could save you tens or hundreds of thousands of dollars compared to putting it into

Roth accounts.

So Roth or traditional, what's best for you?

That's exactly what we're going to explore in today's video and even show you a case study

to quantify the difference and show you how much this could possibly save you.

Let's jump into three myths today that you commonly hear to show you what's actually true

and how you can actually apply this to your specific situation. Myth number one is that Roth is always better

than traditional. Here's the actual principle. You want to put money into pre-tax accounts if taxes

today are higher, then they'll be in the future. But what does that mean? Taxes today are

higher. That's where people actually get tripped up. Taxes today being higher doesn't mean what are federal tax brackets today.

What are state tax brackets today?

That's one component of it.

But what I'm actually concerned about is what is your specific tax bracket, which is a function of two things.

One is general tax brackets as a whole, federal and state level.

But more importantly, what

will your actual taxable income be? So often in your working years, all of your income is

subject to the same tax rates. It's ordinary income, its wages, you're paying full federal

and state taxes on all of that income. But that changes dramatically for most people in retirement.

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