One Concept and Some of Its Applications

Abstract

This article introduces one key concept from the author's most recent book and explores some of its applications. The concept is that a dollar in a tax-deferred account, such as a 401(k), should be viewed as (1 - t_n ) dollar in a tax-exempt account, such as a Roth IRA, where t_n is the expected tax rate in retirement. This concept has several implications for private wealth management. This article discusses some of these implications and their applications.