Whether you choose to invest in a tax-deferred account or not, you will need to have a tax plan. Knowing which accounts could benefit your situation is important. Today, Mike is going to break down different types of accounts and the pros and cons we see with each.

The accounts you should be investing in will depend a lot on your income level and retirement goals. Many of us have invested in tax-deferred accounts. Once you are in retirement you will have to start paying taxes on withdrawals. If you decide to pay taxes now, that may be helpful in the future. Make sure you have a plan for these taxes that fit into your current financial budget. Either way, tax planning is an essential part of our retirement plan. We will also be opening up two mailbag questions today about business ownership and long-term care coverage.

Get additional financial information: https://principalpreservationservices.com/ep-80-tax-pros-and-cons/

What we discuss:

0:47 – Pros and cons of different accounts

2:07 – Tax-deferred accounts

4:37 – Tax ‘free’ accounts

7:49 – Taxable accounts

10:19 – CD tax consequences

12:23 – Life insurance

16:13 – Mailbag: Sell a business or retain ownership?

17:39 – Mailbag: Should we keep long-term care coverage?