How much money should a 27 year old be putting into a 401k?
Answers | 7
Retirement is not the "golden years", it is the "olding years". Like a car, you need repairs, and a place to rest or retire to where someone will come along and help you.
There are places you can invest in or ways to invest for this. Long-term care insurance is still the best way to go, but meet with your insurance broker and get your whole life and long-term care policies sorted out.
I repeat as I have said before, tax deferral does not equate to tax savings. Piling up money in tax-deferred plans increases the likelihood of retiring at a higher tax bracket than what was your tax bracket while working. This almost assuredly will result in taxation of one's Social Security income.
You do know that you are not taxed on the money deferred into a 401(k), right? Yes I understand that you have to pay taxes on that money when it comes out of the account, but to make your statement you would have to completely ignore the time value of money. Also, there could be multiple opportunities to manage the tax brackets and get the money out at a reasonable tax rate, prior to taking Social Security.