Sentences with phrase «remain in a taxable investment account»

The upshot of all this is that people who expect to be in the 25 % bracket or higher during their retirement years should strongly consider a Roth conversion even if the rate of tax on the conversion is as many as ten percentage points higher, provided they can pay the conversion tax with money that would otherwise remain in a taxable investment account and their investment time horizon is a long one.

Not exact matches

However, the point remains — An average investor tends to be MORE exposed to growth stocks than value stocks if he invests through typical investment vehicles in his taxable and tax deferred accounts.

That effectively allows the $ 28,000 to rack - up a tax - free 6 % return within the Roth instead of remaining in the taxable account where taxes on investment gains would result in a lower after - tax return.