Haven't read the article but I think the main point of leverage is taking advantage of the early years of retirement when your marginal tax rate may be very low or much lower than what it would be once RMDs kick in. Similarly for your current rate versus the rate your heirs may have to pay if they are in a high tax bracket.Good day.
Why would I want to pay with todays dollars that I could put off until tomorrow with tomorrows dollars?
For all the concern about diversification and fear of a downturn, why not wait until the downturn to pay taxes?
I guess I don’t generally understand paying earlier than necessary unless it’s a minuscule amount for a very significant long term advantage taking into account inflation and buying power of the dollar today vs tomorrows dollars
It would be interesting to know if the folks that favor heavy AA towards bonds for fear of a downturn and whether they do or don’t pay taxes earlier than necessary if their AA is based on protecting (diversifying) for a downturn.
Statistics: Posted by almostretired1965 — Fri Jan 31, 2025 5:34 pm