It's Brian Preston, the money guy, restoring order to your financial chaos, retirement,

investing, taxing.

You've got financial questions, he's got financial answers.

It's Brian Preston, the money guy.

Okay, we've got a question from Andy.

He says, if you have a high income and are already saving 25%, is it okay to use the

Roth component of the 401k?

I know it's mathematically better to go for pre-tax, but might it be worth it to balance

the buckets?

I want to give you time to think, but I have two things that just popped in my head.

One of the things I always tell people, when you're trying to figure out traditional

versus Roth, one grows tax deferred, meaning when you pull it out in the future, it's

going to be taxed ordinary income, one's tax-free.

Yes, you don't get a tax deduction on the beginning, but it has a potential to compound

many times over and you don't pay any taxes on that long-term growth.

That's pretty exciting when that happens, but it does require when you're doing retirement

planning, you have to kind of, there's a few elements you have to kind of read the

tea leaves on and pontificate and try to make an estimation on, wish you had a delorean

to get this perfect.

As you have to ask yourself, am I going to make more money while I'm working versus

when I'm retired and what do I think the future of tax rates are?

If I think that they're going to be higher, not because of my income, but just because

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