Why You Could Make More In Retirement Than While Working

The Financial Samurai Podcast

One of the biggest reasons I was against contributing to a Roth IRA is my belief that most people won’t make more money in retirement than while working. As a result, they’re unlikely to pay a higher tax rate in retirement than during their working years.

While most Americans earn less in retirement, you aren’t most people. You subscribe to the free Financial Samurai newsletter and are obsessed about money and living an incredible life!

Readers of personal finance sites like this one are likely saving far more and investing more strategically than the average individual. We're a nerdy bunch who care immensely about our financial future.

Thanks to the power of compounding, decades of disciplined saving and investing could result in you earning far more in retirement than you ever anticipated.

And perhaps equally as important is understanding how 401(k) and IRA withdrawals are taxed. They are considered deferred income and will be taxed as income, not capital gains.

You can read more and discuss on my post: Why You May Make More In Retirement Than While Working. There's an example too.

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As I approach the traditional retirement age, I’ve found Boldin’s tools particularly helpful in deciding how much to convert to a Roth IRA. The ability to model various “what if” scenarios has been invaluable for planning my future, especially for when I’m older and less able to manage my finances.

To Your Financial Freedom,

Sam

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