One of the great things about running a personal finance blog like mine is that sometimes you think you’re right about something. So you publish it. And then you find out very quickly from your audience that you could have done a much better job! Just before Halloween, I published what started out as my valiant attempt to challenge the belief that investing in a 401k plan is the better of the retirement income strategies when you compare it to a regular taxable stock-based account. In case you haven’t read it yet, please feel free to check it out here. While I thought I had put forth … [Read more...] about Tax Deferred vs Taxable Retirement Income Strategies, Take 2 – A Much More Substantial Difference!
tax deferred savings
Pop quiz: If you could choose to save $10,000 using one of two retirement income strategies, either a 401k or a regular taxable stock brokerage account, which one would you choose? If you said “401k” (or really any other tax deferred savings account), then that’s what I would have expected you to say. Why? Because that’s what conventional financial planning advice teaches us. We all know that if we want to have a solid retirement income, then we need to max out our tax-deferred savings, let it grow, and then worry about paying the taxes later. And why not? Things like 401k’s and IRA’s … [Read more...] about Tax Deferred vs Taxable Retirement Income Strategies – How Big Are the Differences Really?