The Importance of Marginal Tax Rates in Retirement Planning

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About This Episode

We published an article in late September, Pay Attention to Marginal Tax Rates and Not Tax Brackets, that highlighted how the analytic framework for providing retirement income planning advice can be improved. It focused on three decisions that investors sometimes need to make: (1) whether to convert funds this year from a tax-deferred account (TDA), like a 401(k), to a Roth account; (2) whether to contribute this year to a TDA or a Roth account; and (3) how to tax-efficiently withdraw funds in retirement, where withdraw is interpreted broadly to include Roth conversions. The author of that article is with me today to discuss how advisors should approach those decisions.

About Our Guest

Dr. William Reichenstein is principal of research for and professor emeritus investments at Baylor University. His recent work concentrating on the interaction between investments and taxes. Bill has written more than 200 articles for professional and academic journals and several books. He is a frequent contributor to the Journal of Financial Planning, Journal of Investing, Financial Analysts Journal, Journal of Portfolio Management, and Journal of Wealth Management, and is frequently quoted in the Wall Street Journal and elsewhere.

Show Notes

Here is a link to the Bill’s article on our site.