Planning for retirement is more than simply picking the right investments. We also must consider the type of investment or retirement accounts to use. There are various types of investment and retirement accounts one can use to prepare for retirement, with each having different rules around contribution amounts, distribution requirements, and taxes. To determine which type of account makes the most sense for you, start by comparing your current tax bracket with your anticipated tax bracket in retirement. Generally, people who anticipate being in a higher tax bracket in retirement gravitate towards Roth IRAs. These tax-advantaged accounts allow people to pay taxes on contributions to the account now while they’re in a tentatively lower tax bracket, so they can enjoy tax-free growth potential and withdrawals when they retire. Another factor to consider is diversification. While this is generally considered when it comes to the types of investments, it is also important when it comes to taxes. Having multiple types of accounts with different tax benefits can create tax diversification. To increase tax savings during golden years, investors can implement a strategy called a Roth conversion ladder.