The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  https://boards.fool.com/in-general-its-always-better-to-defer-taxes-17114936.aspx

Subject:  Re: Allocation suggested by FinancialEngines Date:  4/24/2002  1:09 PM
Author:  JimCopland Number:  34335 of 101012

In general, it's always better to defer taxes until tomorrow rather than pay them today (assuming real interest rates are not negative),

Also assuming:
- you will still have the money tomorrow (if you're at risk of being robbed, or of squandering the money, you might want to pay the taxes today)
- that tax rates stay the same (if tax rates are going up, or you cross into a higher bracket, the extra interest you earn might not be worth it)


good point -- especially #2, which isn't always transparent
Copyright 1996-2021 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us