Wednesday, December 19, 2012
We have a tendency to take shortcuts. It is a psychologically proven design of most humans. But before saying I am converting to ROTH to take advantage of the current low capital gains rate (recommended by your trusted financial adviser) perform a long term analysis.
Should it be focused on highest possible return or optimal performance? The answer is personal preference. Some people only focus on getting the most money back, this is generally not the most effective financial planning or resource management. Others invest time to reach the balance between optimal earnings and taking advantage of all possible deductions. One tax professional reiterated: all good tax decisions are inevitably bad business decisions.