Tripping Over Dollars

My Uncle Bill taught me a lot about money and business.

One of his fave sayings was…

Kiddo, don’t trip over dollars trying to pick up pennies.

It was usually in response to me being hung up about some trivial expense.

Like the time I was hesitant to pay an attorney $8,000 to prepare a private placement memorandum for my multi-million dollar private equity fund.

Or when I insisted on wasting 4 hours learning to code custom CSS myself to make one line on my website a specific shade of purple when I could have easily paid a coder $10 to do it for me in 3 minutes.

Now that I work with women who are underprepared for retirement, I chat with many women who are not just tripping over dollars, they’re actively repelling them.

I realized many years ago that deferring income tax on my retirement savings would open up a huge can of whoop ass on me in retirement.

That’s why I bit the bullet and converted my traditional retirement savings into a Roth account.

And all that means is I paid the damn taxes on the money.

It wasn’t an inconsequential amount of money but it’s a no brainer to pay the taxes on that money now instead of paying taxes on it later in retirement when I’ll need the money the most.

I call that tax roulette. And I don’t gamble with my retirement money.

Plus, if I pay the taxes now instead of deferring them, I can keep my investment portfolio intact and just live off the income it produces.

Something you can’t do in a traditional IRA or 401(k) because the government isn’t about to let you die before collecting tax on that money.

So, all this talk about what long term capital gains vs short term capital gains and taxable income vs non-taxable income and annuities and whole life policies and mutual funds and stocks and a thousand other topics we’re pelted with incessantly by pundits boils down to this…

tripping over dollars


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