||I agree. Recently I realized if I work anhoetr 20 years as an engineer (I know guys in their 70s still doing engineering), my traditional 401k and traditional IRA could be at $1,000,000. I have to start taking distributions by 70 and a half. Also I have currently $200,000 in a Roth IRA. So if I take $100,000 per year from my traditional part, my taxes could be in the 28% bracket at the federal level. On the other hand stock investments outside deferral plans will get at most a 20% long term capital gain taxes (Bush tax cuts expire in 2013). I changed my habit to just invest enough in a 401k to get company match. The amount I would have otherwise contributed (including the after-50 catchup) is going into cash for now. I need to pay the other half of the taxes on my conversion to Roth IRAs next April. After that, I decided to mostly invest in good quality companies with very low or no dividends. Dividends will be taxed at ordinary rates starting in 2013. I could be a non-resident of California owning real estate there, and a resident of Nevada. Anytime I want to cash out capital gains, I will return to my Nevada residence for that period of time and officially exit California. That way I would avoid the California capital gains tax. That's my plan in the future.Cash is certainly king. And yes I have zero debt. I have well over $25,000 in T-bills and I think interest rates will certainly come back up. I'm building up T-bills slowly and building up cash in my passbook savings rapidly. I will go up to 2 year notes in a couple of years, after I build up $100,000 in T-bills and passbook savings. I have 52-week T-bills only. But they are evenly spread out so that I have T-bills maturing every 4 weeks and I roll them back in.I think $50,000 or $60,000 will be decent in red states or inland California. But coastal is my aim. I love the California climate the most and on the coast.