It's less of a paradox when you realize that what wealth buys is free time to do with as you please, i.e. pursue happiness/meaning without the worry/need to earn a living. The things it buys are less important than the freedom from worry about money and poverty.
Agree, I'm always skeptical about these tax lowering maneuvers. My primary goal is current cash flow and wealth growth. A lower tax bill doesn't necessarily lead to that. Run the numbers, and pay more attention to the final after tax cash flow and wealth level.
I don't think you understand how profit incentives work. If profits on premiums are capped at 2-5% there are limited ways to increase profits: increase the number of policies sold at a given price point or increase the price of the policy. Since policy price is regulated as a fraction of healthcare cost - the health insurers have an incentive to see health care costs increase so that their premiums increase so that their profits increase.
I wouldn't be too quick to call this risky. 45/45/10 is reasonably conservative. The level of risk really depends on a couple of things left undisclosed - what is their current portfolio withdrawal rate and what is the duration of their bond portfolio. 45% bonds and 10% cash is over 10 years of 5% withdrawals, assuming low duration risk on the bonds sounds pretty reasonable. They could easily manage a significant equity pull back without selling stocks if they are flexible with their withdrawal rate.
Your post didn't answer the question posed in the title. "Is saving really that hard" You didn't ask how easy it would be for a person who makes $3000 a month to save $300 per month. For that you would need a budget. Just some quick calculations:
Monthly income: $3000
FICA Tax (7.65% = $ 229.50)
State and Local Tax (4.57% - typical for PA = $137.10)
Save 10% of 3000 = 300
Federal Tax ~ $140 (Assumes savings is before tax, and single filer with Std deduction) That leaves ~ $2200 a month to live off of. Rent, transportation, health insurance, food, auto insurance if a car owner, various utility bills...... Sounds like someone living on the edge in most places - one financial emergency away from problems (emergency room visit, lost job, expensive car repair).
Honestly you lost me at “tax nazi”. I’m a big fan of legal tax avoidance. However, throwing around such a term with its vile connotation is beneath the standards of this forum.
I wish I could give this 100 up votes, because it is absolutely true. This is a demographic problem, and it will not be solved until that is fundamentally addressed. Increasing taxes on a relatively smaller cohort will not fix the problem and may actually make it worse.
Comments
It's less of a paradox when you realize that what wealth buys is free time to do with as you please, i.e. pursue happiness/meaning without the worry/need to earn a living. The things it buys are less important than the freedom from worry about money and poverty.
Post: The Paradox of Wealth
Link to comment from July 16, 2026
Agree, I'm always skeptical about these tax lowering maneuvers. My primary goal is current cash flow and wealth growth. A lower tax bill doesn't necessarily lead to that. Run the numbers, and pay more attention to the final after tax cash flow and wealth level.
Post: Will Your Death Double Your Spouse’s Tax Bill?
Link to comment from July 16, 2026
I don't think you understand how profit incentives work. If profits on premiums are capped at 2-5% there are limited ways to increase profits: increase the number of policies sold at a given price point or increase the price of the policy. Since policy price is regulated as a fraction of healthcare cost - the health insurers have an incentive to see health care costs increase so that their premiums increase so that their profits increase.
Post: A discussion on health insurance, premiums, profits and such- a 50 year perspective most people don’t want to accept
Link to comment from July 16, 2026
Thanks for posting. Excellent article that many should read.
Post: About that inflation in retirement
Link to comment from July 13, 2026
Excellent post. Will definitely use for future planning.
Post: Don’t Let a Roth Conversion Trigger a Penalty
Link to comment from July 9, 2026
....and inflation stays relatively tame.
Post: Automatic Income stream? How important to you?
Link to comment from June 27, 2026
I wouldn't be too quick to call this risky. 45/45/10 is reasonably conservative. The level of risk really depends on a couple of things left undisclosed - what is their current portfolio withdrawal rate and what is the duration of their bond portfolio. 45% bonds and 10% cash is over 10 years of 5% withdrawals, assuming low duration risk on the bonds sounds pretty reasonable. They could easily manage a significant equity pull back without selling stocks if they are flexible with their withdrawal rate.
Post: Automatic Income stream? How important to you?
Link to comment from June 27, 2026
Your post didn't answer the question posed in the title. "Is saving really that hard" You didn't ask how easy it would be for a person who makes $3000 a month to save $300 per month. For that you would need a budget. Just some quick calculations: Monthly income: $3000 FICA Tax (7.65% = $ 229.50) State and Local Tax (4.57% - typical for PA = $137.10) Save 10% of 3000 = 300 Federal Tax ~ $140 (Assumes savings is before tax, and single filer with Std deduction) That leaves ~ $2200 a month to live off of. Rent, transportation, health insurance, food, auto insurance if a car owner, various utility bills...... Sounds like someone living on the edge in most places - one financial emergency away from problems (emergency room visit, lost job, expensive car repair).
Post: Is saving really that hard? Nope, not for the great majority of Americans.
Link to comment from April 28, 2026
Honestly you lost me at “tax nazi”. I’m a big fan of legal tax avoidance. However, throwing around such a term with its vile connotation is beneath the standards of this forum.
Post: Tax Free Income Trap, Dealing With MAGI
Link to comment from April 21, 2026
I wish I could give this 100 up votes, because it is absolutely true. This is a demographic problem, and it will not be solved until that is fundamentally addressed. Increasing taxes on a relatively smaller cohort will not fix the problem and may actually make it worse.
Post: Fixing Social Security once and for all
Link to comment from April 17, 2026