To Defer or Not to Defer: The Growing Debate over Tax Diversification


In the Journal of Financial Planning, December 2007, Benjamin Tobias was quoted in the article To Defer or Not to Defer: The Growing Debate over Tax Diversification written by Jim Grote.  The article analyzed the pros and cons of using different types of tax-deferred investment vehicles such as the Traditional IRA or a Roth IRA given the current state and possible future changes to the national tax code.  Furthermore, once the investment vehicle is determined, the right investments must be implemented.  Ben said, “Anything taxed at full ordinary income tax rates should be put in qualified plans and anything taxed as low as 15% should be in taxable accounts.”  Ben also noted that he started his career when marginal income tax rates were 70% and capital gains tax rates were at 35%!

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