In this conversation, we discuss tax diversification in retirement and why having different types of accounts can give you more flexibility when it’s time to use your money.
We cover:
- The three major tax categories: taxable, tax-deferred, and tax-free accounts
- Why maxing out a traditional 401(k) may not always be the best strategy
- How tax-deferred withdrawals can affect your tax bracket and Medicare premiums
- Why a Roth IRA can be a highly flexible retirement vehicle
- The difference between Roth IRA contributions and investment growth
- How brokerage accounts can provide flexibility before age 59½
- How to think about a retirement savings “pecking order”
- Why your retirement goals should come before tax considerations
- Why you shouldn’t automatically assume future tax rates will be higher
- How having multiple “buckets” of money can create greater flexibility in retirement.
– – – – – – – – – – – – – – – –
Get Financial Success for the Rest of Us.
– – – – – – – – – – – – – – – –
– – – – – – – – – – – – – – – –
Go to our YouTube channel to:
- LIKE this video if you found it helpful
- COMMENT with your questions or experiences
- SUBSCRIBE for more on family finances, education planning, and saving tips
