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WCI #232: Investing Q&A - The Dragon Portfolio, 457(b)s, 403(b)s And Individual Stocks

White Coat Investor Podcast

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The Traditional vs the Tax Deferred Question

When pull money out of a tax deferred account, such as a four o one k or a traditional ira, it all is taxed at ordinary income tax rates. So really, the traditional versus roth question is about tax rates. It's about your tax rate now versus your tax rate at which you withdraw the money at later. Most people in low earnings years should preferentially use wroth accounts because they will likely be in a higher bracket at withdrawal.

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