I think that's actual math, once one takes into account the stochastic aspect of investing. Famously, Peter Thiel crammed his Roth with PayPal stock and now has 5 billions tax free.Many Bogleheads seem to use these kind of mental short-cuts, and ignoring the actual math. It's not about which account type is best for which asset class, but rather what is best for your portfolio as a whole.Roth doesn’t pay any taxes going forward. For long enough time horizons, you want the highest possible volatility assets there (start up stock shares, if it is an option).
The idea is not to shave a 2% in taxes, but to pay no taxes on a 10 million gain.
Statistics: Posted by Thesaints — Thu Mar 14, 2024 9:55 pm — Replies 15 — Views 1807