Ep 45: What is Tax Diversification?

The word diversification gets used a lot in the financial planning world but it typically refers to investing. Today we want to explain how to apply diversification to tax planning and why it’s important to utilize each of the three buckets: taxable, tax-deferred, and tax-free.

 

What we discuss on this episode: 

0:32 – The concept of tax diversification

1:27 – The different buckets

6:10 – Balancing the three buckets

7:40 – Does tax strategy change over time?

8:50 – Mistakes that can be made

10:55 – Mailbag question on emergency funds

14:00 – Mailbag question on old 401K accounts

 

Important Links:

Chessman Wealth Website: https://www.chessmanwealth.com

Call: 214-572-2120