24 Oct What’s Better For Minimizing Tax Liabilities: Pre-Tax Or Post-Tax Investments?
If you’re deciding how to invest your money, it’s important to understand the effects that these investments will have on your taxes. We asked a panel of professionals to share their opinions on this topic. Read on to learn more.
Michael Hammelburger, CEO at Expense Reduction Group.
Combination of both
I suggest combining both pre- and post-tax investments for better tax diversification. This can also help hedge against a change in tax rates and income in the future. With your pre-tax account contributions, you’re likely to pay lower taxes during your retirement. On the other hand, an after-tax account means that you’ve already paid the tax so you’ll only worry about paying the tax on future earnings.
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