Red pill me on retirement

Putting pre-tax money away is the easiest safest way to build wealth. If you have any mathematical abilities, you can figure it out for yourself in a spreadsheet.

Say you make $50K/year, and you want to set aside $5K of that yearly for retirement. Say with Federal and State taxes, you pay 40% taxes. So you could give the govt $2K in taxes, then take the $3K that is left, and invest that. If you invest, you'll be paying capital gains taxes on that yearly.

Or, you can put the entire $5K in an IRA, invest it, and only pay taxes on it when you draw money out when you retire.

Given how interest compounds, you'll make a fortune in the IRA compared to do it post-tax.

Anyone who doesn't put as much as possible into IRAs or Roth IRAs is financially retarded.

t. I have over $1M in my IRA, just by putting in normal amounts for many years.

We used to have these jars everywhere in Boston

You deposit money, the gov uses it and says thx via maybe the market wont tank and you will get it back but ofc before you do how bout dem taxes first!

You're smart and naive. Your math is correct, but your meta-analysis is lacking. You have $1MM in your 401k, but 40 million baby boomers have 10x that, and they are all rushing for the exit. Good luck collecting your virtual milly if you aren't already on RMDs

>The idea behind an IRA was to defer taxes so you can pay less to the government in retirement. If you think that's possible, you're welcome to trust the government. It's still a bad idea because you're paying up to 1% a year to for the privilege of (((fund managers))) to put your money in index funds

This is retard level in a few ways...

>The idea behind an IRA was to defer taxes so you can pay less to the government in retirement.
No, you aren't just "deferring taxes", you are growing your money much faster by using pre-tax dollars. If you could do math, you'd be able to figure it out, and a little cartoon light bulb would appear over your mostly empty head.

>It's still a bad idea because you're paying up to 1% a year to for the privilege of (((fund managers))) to put your money in index funds.
This is partially retarded. It's true that most funds charge, but you don't have to use those. And, if you don't use an IRA, where would you put your money? A fund? So you're still paying. EVen paying fees to funds, your money will still easily grow much faster pre-tax than whatever you do with it post-tax.

>draw money out when you retire.
assuming america still exists by then

Attached: ay-papi.jpg (1278x1278, 239.6K)

IRA gay. Fuck Feinians.

You can self direct an IRA and avoid a lot of the fees

Lol no one alive is going to have a conventional retirement

>You're smart and naive. Your math is correct, but your meta-analysis is lacking. You have $1MM in your 401k, but 40 million baby boomers have 10x that, and they are all rushing for the exit. Good luck collecting your virtual milly if you aren't already on RMDs

WTF are you talking about? Do you understand the difference between Social Security and an IRA? The govt doesn't have my IRA money. I can have $1M of my money in an investment bank, or I can have $1M of my IRA money in an investment bank. Either way, it's real money, in an investment bank. Govt has nothing to do with it, other than tax it when I start withdrawing it.

Fuck retirement, live now.

Oh bless your heart. Your $1MM IRA money, just like a ponzi, sits in a shared pool (the stock/bond market) where the first people to cash out reduce the total size of the pool for the rest.

I'll enjoy seeing what naive finance bros like you do to cope after you experience the final boomer rugpull

So if I start an IRA the money is a loan to the government or given to boomers? I don't get it. How can they keep getting away with it?

>Or am I locking up my savings with the government who can confiscate it at any time for any reason?
Seems like you already know the answer to this. If it's in a bank, it may as well be the government's money. You seen what happened to the truckers here, didn't you?

Store cash and crypto keys in a PVC pipe buried somewhere inconspicuous but are guaranteed to remember. It's the only way the Jews can't seize your currency if you ever step out of line.

Your money (most commonly) goes into an ETF, effectively distributing your money over a basket of stocks and/or bonds. Boomers already hold most of those stocks and bonds, so you inflate the value of their investment, and get a small portion for yourself. Classic portion, just with more steps

Portion=ponzi

>IRA
retirement funds = tax breaks yearly

And a blind hope that the record-high, inflated stock market will be higher when you retire. Japan's market still hasn't reached the peak it did in the 80s. Japanese people who started an IRA then watched it decline for years relative to holding cash

And what if it does? At least you have a couple milly in stocks. It's all about probability, plan for both scenarios.

it's a scam that fuels a demonic xenos alien parasite that you would not understand

I do a Roth 401k, I'd rather pay taxes on the dollars now instead of paying 35% on my exponentially grown investment. Imagine paying out millions in taxes on your retirement? Kek

>Companies and the govt came together to find a solution for the working man
It's just a scam to keep us reliant and chained to big business.

Attached: 32f.jpg (251x242, 10.29K)

401K yes, with matching funds from employer. 5% match is good. I withdrew $100K under the covid response bill in 2021 tax and penalty free which was based as fuck. Bought a house cash (with other savings I had).

My dad died at 63. I don't need retirement funds. If I do, social security is enough. But free money is free money.