Hi, would you recommend to invest the $6000 max on a Traditional IRA or Roth IRA due to Inflation?
Hello Eliseo, welcome to PFC !
I would first recommend you to read the post: IRA vs 401(k) and Roth vs traditional – Personal Finance Club
In essence, if you were to choose the same mutual fund/ ETF / TDIF the performance is exactly the same, you would “gain” the same inside the account and you would “beat” inflation the same .
Since both accounts differ on the origin of the money, in this case $6,000 , if you were to choose the same TDIF , the growth would be identical, but the issue here is when you take it out, either you will get the gains taxed (Traditional IRA) or not taxed due to using after tax dollars to fund it (Roth IRA)
And this is of course more of a personal situation, will you have more or less income when you are of age to tap into the Retirement Arrangement, working it backwards to the present when you can contribute to either one , is in my opinion the actual choice to make.
HTH
If your concern is inflation, then I would recommend Roth IRA. With inflation, I expect tax rate to inflate/increase. So the growth in Roth IRA is more protected against inflation just because it won’t be taxed.