Do you contribute to a Traditional or a Roth IRA?
The idea behind the investing in a Traditional IRA is that your tax rates will be less when you are retired. Most of our clients did not believe us when we explained that this is a fallacy, that they will be roughly the same. The FICA is taken our before they saw the money, so it registered only as a blip. The income tax was the concern. A contribution to a Traditional is a bet for the future and lower taxes.
A Roth has contributions go in on an after-tax basis, so they are a bet against the future of taxes. The idea is that taxes will ever be going up and deductions and exemptions will go away. The current idea of upping the capital gains, dividend and interest tax rates is a prime example of a bleaker tax future.
So what do you do with your money?