Dr. Daoqi Yang is a software and finance professional with 20 years of industrial experience in the metro Detroit area, and 5 years of academic research and teaching experience at Wayne State University and University of Minnesota. He received his Ph.D. in applied mathematics and M.S. in computer science from Purdue University, USA, and B.S. from Shandong University, China. He is the author of several books, including C++ and Object Oriented Numeric Computing for Scientists and Engineers (Springer-Verlag), and Java Persistence with JPA 2.1 (Outskirts Press). In addition, he has published more than 20 research papers in international journals in the fields of applied mathematics and scientific computing. He is passionate about investing and retirement planning and helping his friends to become better investors. He is currently a manager of product and strategy in finance at a financial company in Michigan. In his free time, he enjoys running, playing badminton, and skiing.
Retirement Planning: 401k vs Roth 401k, IRA vs Roth IRA
by Daoqi Yang, Ph.D.
Retirement Planning: 401k vs Roth 401k, IRA vs Roth IRA
by Daoqi Yang, Ph.D.
Published Aug 03, 2020
130 Pages
Genre: BUSINESS & ECONOMICS / Personal Finance / Retirement Planning
Book Details
Quantitative Analysis of 401(k) vs Roth 401(k), IRA vs Roth IRA, and Roth Conversion
This book aims to provide a comprehensive analysis, with data simulations, of: 1) when investing in a Roth 401(k) or Roth IRA would be a better choice than investing in a traditional pretax 401(k) or IRA; 2) when a Roth conversion would be beneficial to an investor. A unique discovery from the analysis and formulas derived in the book is that Roth can still be a better option even if your future tax brackets are lower than your current tax brackets, depending on your investment time horizon. The hope is that an investor can utilize the formulas and data contained in this book when making strategic decisions on choosing between a Roth 401(k) and pretax 401(k) or between a Roth IRA and traditional IRA, or deciding whether to do a Roth conversion. Making a correct decision could potentially lead to tens or hundreds of thousands of more dollars in their retirement investment.