Navigating Tax Planning: A Journalist’s Journey from Concert Promoter to Certified Financial Planner

Tax reporter for CNBC, Kate Dore, shares her journey from concert promoter to personal finance journalist and how she navigates tax planning in her own portfolio. Dore emphasizes the importance of considering future consequences when making tax-related decisions, as today’s choices can have a significant impact down the line.

One of the key decisions Dore discusses is whether to save money into a pretax or after-tax Roth retirement account. While pretax contributions can lower adjusted gross income, withdrawals in retirement are subject to regular taxes. On the other hand, Roth contributions do not provide an upfront tax break, but the money grows tax-free. Dore highlights the importance of considering factors such as income level, investment options, fees, and legacy goals when making this decision.

Dore shares her own strategy of tax diversification across different investing accounts, including prioritizing employer match with pretax and Roth 401(k) deferrals, making Roth IRA contributions, and investing in a taxable brokerage account. She also mentions having a health savings account as part of her tax diversification strategy, with the goal of making tax-free withdrawals for medical expenses in retirement.

The goal of tax diversification, according to Dore, is to have flexibility in retirement by having different types of accounts to pull from based on yearly tax situations. Experts like JoAnn May emphasize the importance of having a mix of tax-deferred, tax-free, and taxable savings for different types of assets.

Overall, Dore’s journey and insights serve as a valuable guide for individuals looking to navigate tax planning and make informed decisions about their financial future.