#505 - What Is the Ideal Mix Between Before and After Tax Retirement Accounts?

Is there an ideal mix of before and after-tax retirement accounts? If so, what is it? In this episode, we’ll find out. We’ll also explore a number of other questions that have been eating away at listeners like you.

Check out this episode to listen to these listener questions and stick around until the end to hear Kevin Lyle’s relief at no longer having to keep up with the Joneses.

Do you have the right mix of retirement accounts?

Most people heading into retirement have a disproportionate amount of pretax assets since Roth IRAs came a bit later to the retirement planning scene. One listener wants to know if there is an ideal percentage of pretax vs. post-tax assets that retirees should aim to have.

While there is no exact prescribed amount or percentage that you should have, you should aim for flexibility. You don’t want to be forced to withdraw more money than you need due to tax rules. Have you considered the way your retirement funds are allocated? Will you have an inflated amount in pre-tax assets? If so, consider making Roth conversions to see if you can balance out your tax burden.