The Long Game Roth vs. Traditional with Cody Garrett, CFP®
Dec 19, 2025
Cody Garrett, a Certified Financial Planner and co-author of 'Tax Planning to and Through Early Retirement,' shares valuable insights on tax-efficient retirement planning. He emphasizes the importance of understanding income sources and timing Roth conversions strategically. Debunking misconceptions, Cody illustrates how tax deferral can outperform converting to Roth, even in potentially higher tax rate situations. With real-life examples, he advises on maximizing tax efficiency and stresses the need for personalized financial strategies, especially for entrepreneurs seeking liquidity.
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Pay Tax When Your Income Is Lowest
- Pay tax when your taxable income is lowest to minimize lifetime taxes.
- Focus on your current versus future taxable income sources rather than guessing marginal rate changes.
Use Traditional Deferrals To Free Monthly Cashflow
- Defer into traditional workplace plans to capture immediate tax savings and increase monthly cashflow.
- Reinvest that extra cashflow into taxable, HSA, or Roth vehicles to preserve overall savings discipline.
Retirement Spending Can Be Less Taxed Than Work Income
- Spending in retirement doesn't equal taxable income and can be lower than working income.
- Retirees often face less taxable income despite higher spending because many withdrawals are non-ordinary income.
