On the podcast of his radio show yesterday, Dave Ramsey took a call from a woman with a household income of around $250,000 per year. She is 44 and is planning on having $4-6 million saved for her retirement. Her question was about tax rates when she retires. Dave took this opportunity to point out that our current President believes that anyone with money is “evil” and “must be punished.” The woman then went on to say “I feel like….they’re going to ramp that [interest rates] up on us, who have been wise and saved our money….. Well you’re lucky, you have money in your 401k. You need to help out those people who didn’t save.”
This whole concept that the government is basically encouraging people to be broke and punishing those who save and spend responsibly is frightening to me. It makes me wonder what I am thinking to be investing so much time and energy learning how to make, save, and invest money. What is the point in learning to beat the stock market if my dividends (Not that I ever buy a stock for the dividend!) are going to be taxed at 40% and my capital gains at 24%? Would I be better off quitting my job and signing up for welfare?
Obviously the lifestyle I currently lead is much nicer than it would be if I was on welfare, however is the difference in effort required to maintain each lifestyle proportionately different? I’m not sure.