58 • RUBY, WILDING & SWANSBURG
Macro vs. Micro Aant ytohnise pdoisincut sisnetdhtehbisowokit,hymoue mbeafyorbee?”thinking, “Why hasn’t W tax h e y s I t ? i ’ ss nt h’ t e amn oy os tnceo mt aml k oi nng r eaabcotui ot naI gl oe nt gf r- og ma msea vaepr ps rl iokaec hy o tuo: The answer is simple, and, once you understand it, you’ll find it much easier to plan for your taxes in retirement. The truth is, in my experience, the vast majority of AA mmei rc ircoa tnarxeltei nr esme xeanmt ai nd ev si cheoi swgai vseanv itnhgr so udgehc ias imo ni cwr oi l tl ai mx lpeancst. your taxes in the short term—usually in a given year. When we save in a tax-deferred account, we receive a tax di netdouacnt i oI Rn Af oirnt h2a0t2y0e, amr . yT ht aexraeb’ sl ea imn ci cormo eb ei nn e2f i0t 2. I0f Iwpeunt t$ d6 o, 0w0 n0 by $6,000. Neat! If we evaluate my 2020 savings approach through a micro lens, I made a good decision: I lowered my 2020 taxes. But, the biggest mistake savers make when it comes to taxes in retirement is solely relying on a micro tax lens. What you also need is a macro tax lens. A macro tax lens isn’t concerned solely with short-term traextierse.mItesngt.oal is to evaluate and minimize lifetime taxes in Viewed through a macro tax lens, my 2020 savings as up cphr oaa cshm(acrotn dt rei cbius ti oi nng. $A6f t, 0e r0 0a ltlo, Im’ vye IjRu As t) smpiegnhtt tnhoi ts been tni roet chapter discussing why my taxes in retirement aren't likely to be lower than my taxes today. So, in this case, Il e g ims laayt i v eh ar ivsek —i nbcyr ec aosnet dr i b umt iyn g ftuot au rtea x - tdaexf ee sr —r e da nadc c ofuunt ut . r e
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