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<I think you should figure on being at a lower tax rate after retirement. I would use 15% instead of 28%.>

I think you are being unrealistically pessimistic. If someone starts saving regularly in a 401(k), an IRA, or a Roth IRA, starting at a suitably young age (say 25 to 30) and does this consistently until age 60 to 65, they should achieve a great return. Even if they wait until they are 70 1/2, they must ultimately take the money out. At that point, the amount they take out will quite possibly put them in the 28%, 31%, 36%, or 39.6% incremental tax bracket, depending on how soon they started these plans, how much they were able to invest each year, their fortune in picking the right investments, etc. It is relatively easy, by employing Foolish methods, to run your capital over $2,000,000, and taking about 5% of that out every year can kick you out of your 15% incremental tax bracket.
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