12-31-2006, 04:39 PM
[quote elmo3][quote raz]Per http://benefitsattorney.com/modules.php?name=415 the maximum contribution to a 401(k) for 2006 is $15,000 and for 2007 is $15,500.
If you can really afford to sock that much away, great. Few people can.
I disagree. Many, many can.
The fact is, few people *do*--for a number of reasons, virtually all of which add up to that they'd rather pay the tax today and spend the after-tax money today on things like Macintosh computers and leases on fancy cars instead of save for their future.
While I will concede that for a great many people, instant gratification is more important than long term security, I will disagree with your statement.
http://www.cazelaw.com/medianincome.php lists median income on a per state basis. In PA (picked at random because I live here), 2006 median income for a family of 4 is $68,646. After food, rent/mortgage, utilities, gas, clothing, and taxes I strongly doubt that there's $1500 left at the end of the year - much less $15000.
That effectively eliminates half of the population from "a great many can". Add in tuition, car payments, medical expenses, day care, ... and it gets even worse.
Most people I know are above the median income, and a few of them save nothing. But, the vast majority of the population has been losing economic ground since the late 70s.
If you can really afford to sock that much away, great. Few people can.
I disagree. Many, many can.
The fact is, few people *do*--for a number of reasons, virtually all of which add up to that they'd rather pay the tax today and spend the after-tax money today on things like Macintosh computers and leases on fancy cars instead of save for their future.
While I will concede that for a great many people, instant gratification is more important than long term security, I will disagree with your statement.
http://www.cazelaw.com/medianincome.php lists median income on a per state basis. In PA (picked at random because I live here), 2006 median income for a family of 4 is $68,646. After food, rent/mortgage, utilities, gas, clothing, and taxes I strongly doubt that there's $1500 left at the end of the year - much less $15000.
That effectively eliminates half of the population from "a great many can". Add in tuition, car payments, medical expenses, day care, ... and it gets even worse.
Most people I know are above the median income, and a few of them save nothing. But, the vast majority of the population has been losing economic ground since the late 70s.