Why I decided to pay more taxes now 💰

I decided I think I want to pay $500 more in taxes this year.

In recent years I’ve been doing deferred compensation, which is the equivalent to a 401k type plan in the private sector. I’ve long done a Roth IRA but always did most of deferred comp pre-tax rather then with a Roth deferred comp post-tax. But I have started to worry more and more about taxes in retirement when I have that off-grid homestead.

Clearly buying land, cabin, infrastructure for livestock and living is going to be the big expense. But also I’ve watched alarmingly how quickly my taxable investment and retirement accounts have grown, even though I have been maxing out my Roth IRA for a decade and half now. I also have a lot of concern that the tax brackets will be pushed upwards, and being in Tier 4 Pension system, I will easily be pushed into the 24% bracket in retirement, especially if I have expenses and need to cash out money related to livestock and equipment. On the other hand, I do like the savings that contributing to regular deferred comp has by going in pre-tax.

As you get older, you think more and more about taxes. And it seems like only taxes will go up – not just on the rich – but ordinary people who work hard and invest. The government, ever growing, needs it’s money. Still it doesn’t seem fair how much it truly takes.