For years, I assumed Roth contributions were the smarter move. Pay the taxes now, enjoy tax-free growth later, and never worry about future tax hikes. It felt simple and responsible. But during my highest-earning years, that mindset was quietly slowing down my progress toward financial independence.

Financial planner and tax expert Cody Garrett explains why Traditional contributions often outperform Roth for people pursuing FI. The key insight: during retirement, it’s not your income that drives taxes, it’s your spending. That shift changes everything about how tax planning should work for early retirees and those working toward financial independence.

In this conversation, we break down the three major reasons Traditional contributions often win, why retirees benefit from a surprisingly friendly tax code, and how locking yourself into Roth contributions too early can limit your future flexibility. You’ll also learn how strategic tax planning can help you reach your FI number faster and create more options once you stop working.

Key Takeaways:

• Lower today’s tax bill during peak earning years
• Optimize tax brackets and avoid costly phase-outs
• Retirement taxes depend on spending, not income
• Preserve flexibility to convert to Roth later
• Avoid overpaying taxes during high-income years
• Use Traditional savings to accelerate your FI timeline
• Take advantage of the retiree-friendly tax code

Other Episodes You’ll Love:

50/30/20 Budget: Does This Popular Guideline Actually Work for FI Seekers? | E184

3 Hidden Traps That Make FIRE Feel Empty | E182 Jordan Grumet

Optimal Tax Strategies for Your Early Retirement | E180 Cody Garrett & Sean Mullaney

Guest Summary:

Cody Garrett is a financial planner, tax specialist, and the founder of Measure Twice Financial. A former professional musician turned financial advisor, Cody specializes in tax planning strategies for people pursuing financial independence and early retirement. His work focuses on helping high earners optimize tax strategies during their working years while creating flexible withdrawal strategies for retirement.

Book: Tax Planning To and Through Early Retirement

Website

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Email me at [email protected] or connect with me on LinkedIn.

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