The 100k Illusion: Why Your Salary is Taxed Double Your Spending
Stop calculating your retirement taxes based on your current paycheck. This is the single most expensive math error high-earners make. It relies on a false assumption: that earning money and spending money are taxed the same way. They are not. Here is the breakdown of why earning $100,000 today is radically different than withdrawing $100,000 in retirement. The Earning Side: The “Top Dollar” Problem When you are working, every extra dollar you earn (or save) is taxed at your highest rate. This is your Marginal Rate. ...