To fulfill the assumptions, lets say I'm a buy and hold forever investor and I'm retiring in 30 years. The cap gains tax rate in retirement (20%) is lower than my marginal regular income tax rate today (30%).Assuming that the same rules for capital gains vs. ordinary income will be in place 30 years from now as are in place today is optimistic at best. For instance, 30 years ago, capital gains rates were higher than ordinary income rates.To combat this possibility, it's probably best to have both pre-tax and after-tax accounts, so you can tailor your income to tax rules that are in force at the time of your retirement.Additionally, because in retirement you won't have an income to take you up to the marginal tax rate, you are probably better to assume taxes on the pre-tax accounts at the effective tax rate, including all deductions and exemptions, rather than the marginal tax rate.AJ
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