Quote:
Originally Posted by noppenbd
Jim, dividend and LT capital gains are only a factor for taxable holdings (non-IRA). I suspect most people at low end of 25% bracket do not hold the majority of their monies in taxable holdings, so expecting a large portion of retirement income to come from them is not realistic. As you know, LT capital gains & dividends within traditional IRAs & 401ks are taxed like ordinary income when withdrawn.
In an ideal world, everyone would split monies between pre-tax, Roth, and taxable to get maximum flexibility.
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That is why a tax plan, withdraw plan, and savings plan are all key pieces of a financial plan. If you save you really don't have a comprehensive financial plan, just a more complex problem later.
If you are putting money into accounts blindly, expect to be blinded by a rule or two when you go to pull money out.