Originally Posted by
Trip7
What several of us have tried to stress is that savings is small enough that it is not remotely worth the 5% target return that is outside of your control. The only real savings is if your withdrawals are taxed in a lower income bracket.
It is tax deferral not tax avoidance. An investor's focus should always be on total return. A lot of investors have lost significant wealth focusing on tax deferral vs capital appreciation/total return. IMO the MBCBP is an inefficient use of Capital.
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And if you read my post again you will see I specifically said it was tax deferral. I made no mention of tax avoidance. The Government will get its money one way or the other. I'd just like to know what the return would be considering the tax deferral nature of the Plan. What are the actual numbers? Not your claim that it will be low. Is it 1, 2, 3 percent on top of the 5%? What is the true number?
Pretty sure anyone who retires in the next 5 to 10 years will be in that lower tax bracket. And that's a boatload of pilots...