Exactly: it's fine to pay more taxes if you end up with more spendable money. The problem some of us have is that we chose to defer taxes and are now paying taxes on that same money at double the rate we could have paid when we were working.When I worked full time, I tried to max out any pretax space available. 401k, HSA, DBP. My plan was to fully retire early and do Roth conversions. Instead, I realized that part time work is a much better path for us. So ..... instead of Roth conversions, all that pretax space is growing. Those deferred taxes will be due one day, and at a much higher bracket than originally calculated. Mama didn't raise no fool. More money and higher taxes is better than less money and lower taxes.
I will admit, that it is very easy to lose the forest through the trees and work on solely minimizing taxes where the real goal isn't lower taxes, but more spendable cash after taxes, fees, fixed expenses, etc.
Statistics: Posted by tibbitts — Wed Aug 21, 2024 9:31 pm — Replies 241 — Views 17975