Tax-deferred retirement accounts make sense if you expect your tax rate to be lower in retirement than now. I expect tax rates to increase, so would rather pay the tax now than when I take the money out. In US, Roth IRA allows that.
“Your Money or Your Life” is worth reading. Build up your savings and decrease your spending until earnings on savings equal spending. After that, you don’t have to work for money. Worthwhile work still enhances health and happiness, though.
Robert Frank’s books on economics make the point that relative income is more important than widely recognized. Two examples he may have missed:
1) it’s not just how much education you have, but how it compares to the competition. So the best-educated get the best jobs, but that doesn’t mean everyone would have a good job if everyone was better educated.
2) losing health insurance is a disaster if you are competing for health services with the insured. But if everyone loses health insurance (e.g., Medicare collapses), doctors will have to lower their fees.
Tax-deferred retirement accounts make sense if you expect your tax rate to be lower in retirement than now. I expect tax rates to increase, so would rather pay the tax now than when I take the money out. In US, Roth IRA allows that.
“Your Money or Your Life” is worth reading. Build up your savings and decrease your spending until earnings on savings equal spending. After that, you don’t have to work for money. Worthwhile work still enhances health and happiness, though.
Robert Frank’s books on economics make the point that relative income is more important than widely recognized. Two examples he may have missed: 1) it’s not just how much education you have, but how it compares to the competition. So the best-educated get the best jobs, but that doesn’t mean everyone would have a good job if everyone was better educated. 2) losing health insurance is a disaster if you are competing for health services with the insured. But if everyone loses health insurance (e.g., Medicare collapses), doctors will have to lower their fees.