Your effective tax rate is the overall percentage of your total income that goes to taxes — a blended rate across all brackets. Your marginal rate is the rate you pay on your next dollar of income — the top bracket you are in. In retirement, your marginal rate drives many important decisions, such as whether to do a Roth conversion or take an extra withdrawal. A retiree with a 12% effective rate might face a 22% marginal rate on additional income, which changes the calculus significantly.
We exist so you don’t have to worry about money. For more than 40 years, we’ve taken the sophisticated, time-tested approach that many ultra-high net worth individuals use to help manage their financial lives and made it accessible to more families.
