"Is it better to take the compensation now, pay current taxes at lower ordinary income rates than those expected in the future, reinvest the net amount, and then sell it later at capital gains rates? Or is it better to defer the income and taxes on it today and pay a greater total amount of taxes when it is distributed in the future? The answer depends on three factors: the calculation of current and future tax rates for both ordinary income and capital gains; the investment return on the compensation deferred; [and] the growth of the alternative investment(s) for the after-tax amount of the compensation without deferral."  MORE >>