Hey everyone, I have a rather elementary question that I hope you'll excuse. Although I'll be working in finance (FT in the fall), my knowledge of retirement planning is next to nonexistent. I've been trying to read up online, but am having trouble going through and actually understanding the numerous WSO threads + other online resources dedicated to this matter. I'm hoping you can help.
A couple questions:
1) It appears that many young investment bankers opt for the Roth IRA / Roth 401(k). Is this a correct perception? Do the majority of i-bankers select the Roth, or have I just been looking at biased threads?
2) If the above perception is true, and most i-bankers opt for the Roth, is it because though they're already earning six figures off the bat, they comfortably expect to earn even greater incomes by the time they retire? Isn't this kind of a ballsy move to assume that you'll make it big time as a partner, or as an owner of a hedge fund? What if you switch industries somewhere along the way, and are working at a small company with smaller income at your retirement age?
Thanks in advance. I understand that my questions are rather ELI5, but I look forward to your help.