The Taxing Taxonomy of Taxes (IRA Edition)
People often overlook the importance of taxes in their investment planning. They also don’t often maximize the use of IRAs and 401ks in their tax planning. It is not just about how much money you invest in your IRAs; it is also about which types of assets go in which types of accounts. Do you put the same mix of investments in all your accounts, or do you put your bonds in one type of account and stocks in another? For that matter, should you have some of your savings in a taxable account if you already have a lot of your money tied up in IRAs? These are important questions, and the answers can be surprising and can change with your age. If you have not discussed these kinds of questions with an advisor before, you should read on.