This is a good article about 401Ks and Roth IRAs. I hate that I am old enough to worry about these things…
The earlier the better though!
But by putting money in both a 401(k) and a Roth IRA, you’re hedging your bets. I call this strategy “tax diversification” because, like asset allocation, it prevents you from making an all-or-nothing bet (although in this case, you’re protecting yourself by diversifying your exposure to tax rates instead of different types of investments).
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