I’ve only worked for 15 years but I already know if the inheritance I’ll be leaving to my nieces and nephews will be taxed at 90% I will just retire sooner. And I’m center-left.
That is not a problem. As long as you spend that money.
Our problem right now is that the money is not spent. The earlier you retire to spend it the better we are as an economy. So yes. Go for it. That is the point :)
> The earlier you retire to spend it the better we are as an economy. So yes. Go for it.
A problem in the US is that the system essentially forces people to hoard more and more and more because there is no useful social safety net. So you are forced to constantly think what if. What if I live longer than average? What if there are unexpected expenses? So the only responsible answer is keep working and hoarding for those what ifs. It's not a healthy system since it encourages the hoarding but also because it prevents people from enjoying a longer retirement.
It’s weird that not spending every dime you make is being characterized as hoarding. My wife and I spend to our level of wants and needs and invest the rest. We’re not hoarding, we’re planning.
> It’s weird that not spending every dime you make is being characterized as hoarding.
That's not at all what I meant. Maybe hoarding is the wrong word, couldn't think of another one. Saving is great, but what is the amount one needs to save?
What is your target amount in investments to be able to retire?
What I mean is that in the US there is a neverending pressure to save more and more because you never know what might happen and there is no social safety net so it's all on you. So you must keep working and saving to cover every conceivable future edge case, so it feels like no amount will ever be enough.
How do you prevent massive inflation as everyone dumps their money into buying goods and services instead of saving? Kind of like we have going now after the covid money and economic boom
Or you start giving earlier (depending how presents are taxed), and your nieces and nephews receive the support when they are young and strapped for cash. I think this would help stimulating the economy much more than if your heirs are in their 50s+, when they (on average) don't need any money and just keep hording it.
I’m not hoarding anything. They’re getting checks regularly. They’d be getting a lot more if I weren’t taxed at obscene rates relative to billionaires.
