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Deferred compensation is a benefit primarily available to corporate executives, as discussed by Michelle Smallenberger from Financial Design Studio. The tutorial covers several key aspects, including the definition of deferred compensation, tax timing considerations, and essential decisions to make when utilizing this benefit. Deferred compensation allows individuals to earn income now while deferring it to a future date, typically to save on taxes. It can be beneficial when a person anticipates being in a lower tax bracket later. The video also explores the pros and cons of deferred compensation and its implications for personal financial planning.
