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Deferred compensation is a benefit available to many corporate executives, explained by Michelle Smallenberger from Financial Design Studio. The tutorial discusses key aspects such as what deferred compensation is, optimal timing for its use, tax implications, and the decisions associated with it. Essentially, deferred compensation allows individuals to defer income to a future date, often to achieve tax savings by shifting income to a time when they may be in a lower tax bracket. The discussion also includes the pros and cons of this benefit and its impact on financial planning.
