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.

All right, question from Frank.

Talking about the three bucket strategy, why is it recommended to have pre-tax and Roth

retirement accounts?

Is there a disadvantage to having just Roth and aftertax brokerage?

You know, Frank, it's not a disadvantage.

It's more a practicality of how you build up your assets.

If you're someone who's above 30% between your federal and your state, it's really hard

to walk away from that current year tax benefit.

You know, I mean, think about if you're someone in your 30s or 40s.

You know your dollar, still have a lot of juice in them.

We always think about that in terms of, okay, well, if I put this dollar inside of my

Roth IRA, it's going to, you know, compound tax-free, then that's awesome.

But think about the tax savings.

If you are someone in those 30%, maybe even with the state you get up into 40%, it is really,

really, really hard to walk away from that current year tax benefit.

So when we look at most people who build up their three buckets, it kind of ends up happening

out of necessity.

I was in, I was in these years when my income was really, really high, and so I did pre-tax.

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