Tax diversification in action

You might be wondering what’s the best mix of retirement accounts for you. As Hayden Adams, CPA, CFP, and director of tax planning at the Schwab Center for Financial Research explained, “that varies depending on many factors, such as your current marginal tax rate, your tax rate in retirement, and exactly how much flexibility you’d want when you make withdrawals in retirement.”

Even so, there are a couple of basic guidelines you have to consider when you decide which retirement accounts you have to fund first. Here’s what you need to consider: (click on the next page!)