true, I was thinking more along the line of after retirement. since the withdrawals will at that time be counted as income, the rate it is taxed would still be less assuming retirement income is less than current income.
that is a good point though about the 401k earnings not being taxed currently, as the divident heavy stocks will still have plenty of appeal for the 401k investors.[/quote]
Don’t be so sure about that…You retirement income might NOT be less that it is. If you did well, you might have to take mandatory distributions that end up being more than your current income, if you have a sizeable account.
Also, it’s a big assumption that your tax rate 30+years from now (even with a lower income) will be less than what it is now. Personally, I don’t see that happening either… I have a feeling everyone’s taxes are going to be significantly higher 30 years from now than it is now…Assuming the U.S. is still around in it’s current form 30 years from now.
Actually, what I’m more interested in is suppose you have a sizeable 401k account, and you eventually have it parked in a cash account/money market. I’m wondering if there is any institution that will underwrite you a loan, using it as collateral……Kinda like borrowing against yourself, subject to minor banking fees……
