Jan. 21st, 2013

pktechgirlbackup: (pktechgirl)
When senior cat is hungry, he follows me from room to room, begging. When junior cat is hungry, she paws at the door to the food cupboard.
pktechgirlbackup: (pktechgirl)
I'm currently neglecting normal savings in favor of squeezing the last penny into my 401k. I can do this because I can be really sure I will not need that money until I am 65. I have a large cushion, and if anything truly catastrophic happened, my parents would help. I assure you I am extremely motivated not to let this happen, but I can't escape the fact that in case of expensive cancer, I can break that glass. I have friends who make more money than me who cannot do this. They need a larger cushion because not only can their parents not rescue them, they might have to rescue their parents. Or siblings. Or in laws. And come 65 (under current tax codes), even if my friends never actually gave money to their parents and I never actually accepted any from mine, I will have more money than them, because I had the flexibility to put more in my retirement account. And these are people high paying, highly secure jobs.

This strikes me as a flaw in programs like 401ks and Flexible Spending Accounts: they're more useful the more flexible your money, and flexibility is directly tied to wealth. Not even income, but wealth.


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