Lars is putting about $30,000 a year into his retirement plan at the CPA firm. Actually it isn't just Lars's; it's earned income therefore his and Kyra's community property. His account has grown to about a million and a half. This would have seemed like a great amount when Lars started work. Now it's not even their largest asset; they have more than that in real estate, thanks mostly to the smarts and generosity of his childless Uncle Nils.
Some of the retirement plan is Roth, meaning Lars doesn't get to deduct that portion going into the plan, but it isn't taxable when it comes out. His account is invested in stocks, bonds, and REITs. The plan permits Lars and the other participants to direct their own allocations. Lars likes watching the numbers and has an especially good feeling about this holding generally. Why?