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Flexibility. The Biggest Reason NOT to Have All Your Money In One Basket! Thumbnail

Flexibility. The Biggest Reason NOT to Have All Your Money In One Basket!

Investment Retirement Funding Insights

Flexibility. The Biggest Reason NOT to Have All Your Money In One Basket!

Pay your taxes now. Don’t wait. Don’t defer.

For many Americans there is a belief that you will retire in a lower tax bracket than when you are working. This is typically based on the advice that you can retire using 80% of your pre-retirement income. It has been my experience that this (for the most part) is false. 

Let’s run a quick example.

Billy and Sally had a combined taxable income amount of $250k. That puts them in the 24% tax bracket today. 80% of $250k is $200k. I’m sorry to inform you, that’s STILL the 24% tax bracket.

To take this one step further, if Billy and Sally put all of the retirement money into a traditional 401k, that means all of that money will be taxable. Oh by the way, up to 85% of your social security can also be taxable.

By doing this, they gave up their right to control what tax bracket they will be in when they retire. Putting all of your money into one style of tax bucket gives up any flexibility they might have had in regard to taxation.

To be clear, I’m NOT saying don’t put any money in a traditional 401k. I am saying don’t put all your money in a 401k.

Where else can you put your money?

  • Roth 401k
  • Roth IRA
  • Standard Investment account
  • Permanent Life Insurance
  • Passive Income Producing Assets such as Real Estate

Have balance not just in your investment portfolio but also how your money will be taxed.


Ryan Burklo is a Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 333 N. Indian Hill Blvd., Claremont, CA 91711. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly-owned subsidiary of Guardian. Quantified Financial Partners is not an affiliate or subsidiary of PAS or Guardian. This material contains the current opinions of the author but not necessarily those of Guardian or

its subsidiaries and such opinions are subject to change without notice. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. This article was written by an independent third party. It is provided for informational and educational purposes only. The views and opinions expressed herein may not be those of Guardian Life Insurance Company of America (Guardian) or any of its subsidiaries or affiliates. Guardian does not verify and does not guarantee the accuracy or completeness of the information or opinions presented herein. AR Insurance License #15319412CA Insurance License #0K24924 # 2021-121914 Exp 05/2023