Two things are true:— BowTiedBull - Read Pinned Tweet or NGMI (@BowTiedBull) December 17, 2022
1) no rich person cares about a 401K or their retirement account
2) when you're working and aren't rich yet you should take the company match and max out your 401K
If you don't get this, don't respond. Thx.
This relates to the Tax Free Savings Account (TFSA*) saga in 2015 in Canada. The nominally right-wing government increased the contribution room from $5,500 to $10,000 for the TFSA. The liberal opposition was successful in portraying this policy as a benefit for the rich!
Think about it. Who benefits more from an extra $4,500 in tax-free investment growth every year? A rich guy worth tens of millions of dollars or a middle class man saving for the future? Yet, the normal Canadian idiot bought this stupid logic.
An example: A 20-year-old who just starts working and saving doesn't use the TFSA for a decade. If the contribution room was $10,000 per year, then he would have a combined $100,000 available to invest tax-free at the age of 30! If he got an inheritance, then he could invest it and shield decades of returns from taxes.
Sadly, the liberals brought the limit down back to $5,500 in 2016.
* The name is just horrible. It should have been called the Tax Free Investment Account.