America: (Roth) 401k and IRAs
<p>The Traditional 401k is a powerful investment tool that allows you to deduct contributions made from your tax return and pay tax on withdrawals in retirement. That is, contributions made are <em>tax-deferred </em>until retirement. This is usually suited towards investors that will have a lower tax bracket when they retire.</p>
<p>To grossly oversimplify, as a high income earner you will save a lot of tax now and pay a little bit of tax later when you retire.</p>
<p>Of course, if you plan on having a lot of income when you retire, the Roth 401k might be a better choice.</p>
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