Savings bonds purchased with after (income) tax money. Let's ignore the tax-deferred stuff, as those were already accounted for in my retirement spending plan. Let's just concentrate on the principal I invested in the safest instrument on the planet: US Treasury securities.
As I understand it, for every $1000 of that, I need to adjust my retirement spending plan downward by aprox. 20+% because of the new, "Fair Tax."
I wish someone had told me about this forty years ago, before I started executing my retirement savings plan.
Don't worry too much, the FairTax isn't going to be passed. It has too many obvious flaws.
That's fine but how do you account for the 20% increase in the purchasing power of that portion?
"I need to adjust my retirement spending plan downward by aprox. 20+%"Before you get too concerned about the claims of the FairTax opponents which are intentional demagoguery to play into a person's worst fears, be sure to use the FairTax Calculator linked in post #784 and find out just what your effective FairTax rate would be.
It will certainly not be the 20+% number that you've been led to believe and it is hugely influenced by your own consumption and/or savings/investing decisions. The Calculator is anonymous and free to use. It is also accurate.