The Boston Gal put up this Boston Globe article. It suggests stopping investing in your 401k and instead put the money into taxable accounts. This will help with tax diversification. So stop overdoing your 401k. This way as the market tanks you can take advantage of the losses and lower you tax bill.
Overall sounds like a good plan right? Plus economists say they don't know where tax rates are heading, so why put money away in a retirement account. Another good point. Plus they suggest writing off losses in taxable accounts against gains, something you can't do in retirement accounts.
I agree it does make sense in some ways. But major flaw in the article is assuming that people will save the money they no longer dump into a 401k into a taxable account. We all know the reality is that people barely contribute to their 401k as is. US personal savings rate is -0.5%. So whose to say that someone contributing 5% to their 401k will turn around and contribute 3% to a taxable account instead?
Is that realistic or reasonable? So the only option is to not stop saving into retirement accounts. If people stop, will they save the excess or just spend it. We're better off not tampering any savings, considering the problems we as a society have in general with saving.