Daily FI discussion thread - May 09, 2016

Is the concept of a Roth conversion ladder really akin to a "rich person thing" to the general public?

Not just to the general public. Statistically it's a rich person thing. A lot of our benefits and tax incentives are structured in a way that lets rich people gain the most benefit. Simply because they have more to put toward them. Versus say an earned income tax program or a guaranteed benefit program...etc.

I think about this whole rich/middle class thing a lot. The way everyone in America wants to consider themselves middle class. Poor people round up, and feel like the things they put up with are normal. Others are well off and rounding down because it's totally normal to make $X. This person or that person has way more than me...etc. It's all amplified by the way we live... in neighborhoods, schools and stores that are segregated by class. And by the fact that fewer people are middle class now than before. There's a sort of divergence that's been happening.

Just an example from my own life, I could go grocery shopping by work, but it's depressing seeing people with food stamps trying to decide whether to buy milk or chicken. I'd much rather buy food in the suburbs. It's cheaper and nicer. More selection. I never buy gas in the city because the neighborhood is full of drugs and homeless people. I only get it once I'm home in my upper-middle class neighborhood. Because it's a lot nicer buying gas without some weird drug addict looking at you. And I can afford to do that. Buy cheaper groceries in a safer neighborhood because I'm extremely fortunate to make $43,000 per year and drive my crappy used car to a professional job.

/r/financialindependence Thread Parent