Over the last decade, financial planners have transitioned from focusing solely on Roth savings to embracing a diversified investment strategy. They now prioritize pretax and Roth 401(k) deferrals to maximize employer matches, make Roth IRA contributions, and maintain taxable brokerage and health savings accounts. This approach provides flexibility, allowing for varied withdrawals based on yearly tax circumstances. While asset location can affect tax bills, financial decisions should prioritize overall wealth accumulation over tax optimization.
