Tax Deferred Accounts During Your Peak Earnings Years

If you are in the 35 % bracket right now, chances are very good you are not going to have enough retirement income income during retirement. Most people will be withdrawing that money at a lower tax rate in retirement than their peak earnings years. Even though with the tax deferred account you pay more in tax at withdrawal than you would have paid before you contributed the money, you end up with the same amount of money after tax. Is just math. That's the way it works. It doesn't matter whether you use a tax deferred account or a tax free account if the rate at withdrawal is precisely the same as the rate at contribution.

Transcript

Play full episode

Transcript

Episode notes

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!

Get the app