Pre-tax investment accounts like Traditional IRA or a 401K has its benefits. Post-tax investment accounts like a Roth IRA also has its benefits. And how do you choose how you allocate your investments?
In this quick podcast episode, we explain the benefits of a pre-tax investment and the post-tax investment. Which type of investment to choose will (as with anything in healthcare, and as you’re starting to realize in finance) DEPEND on your goals and situation.
Many people make the mistake of recommending one extreme or the other. They either recommend focusing on pre-tax retirement accounts or focusing on Roth IRAs.
Its amazing how many “financial professionals” get this wrong. The correct answer is “it depends” on your situation as well as a focus on retirement income diversification.
This podcast goes deeper into how you should be making this decision.