A defined benefit plan or 401k plan is a great way to shelter money from taxes. While the benefits are well established, a key omission is you have to pay those taxes later. Will taxes be lower or higher in the future?
As recently as 1978 income over $200k was taxed at 70%. Taxes are historically low now. Are we deferring taxes now at a lower rate only to be taxed at a higher rate when we retire? Maybe a more diversified approach is needed. Read More