If we think the average worker bee (or even pointy-haired boss) can sort out the smorgasbord of retirement savings plans to best advantage, we are deluding ourselves.

I don't think that I agree with this--the optimum mix of plans can be sorted out, but it's hard work, and necessarily is based on assumptions of future returns and tax rates, over which we have no control.

The scary part is not knowing what our tax rate will be when DH retires (and after) and feeling like the decision is never final, that I need to keep revisiting it.

Yes, we all need to keep revisiting it. I do so once each year (at a minimum). Each individual's situation and assessment of that situation is quite different. The assessment is hard work, but well-worth it, since one would hope that an 'informed' guess in most cases will work out better in the long run than a 'shot-in-the-dark'.

Scott Burns assumes that the 15% cap gains rate will be in effect in the future--there is no guarantee of this, neither is there any guarantee on what the threshold income for SS taxation will be, the amount of SS income itself, nor the future tax rates on ordinary income. For this reason many here on the TMF boards do have different types of accounts to enable them to take better advantage of whatever changes take place in the future. I myself have 5 different types of accounts. Unfortunately I can't take advantage of the Roth since my income exceeds the threshold--I believe the Roth is a great idea in addition to 401K/403b contributions. We can only hope that they don't change the taxation rules on the Roth midstream, like they've done in other areas. I also like taxable accounts, for the much greater flexibility they afford, as Burns states.

In short, a mix of at least 3 accounts (401K, Roth, taxable) would appear to be a good idea for most folks. The mix of how much should go to each is completely dependent on your current income and tax rates, and your future assumptions of income and tax rates.

2old