My 401k went up $40,000 on paper last year.

I didn’t sell anything.
I didn’t withdraw anything.
I didn’t receive a single dollar.
It’s just a number on a screen.
But if I withdraw it to actually use it?
Federal tax.
State tax.
Early withdrawal penalty if I’m under 59½.
They’ll take 30-40% of money I haven’t spent yet.
On gains I haven’t realized yet.
On a retirement I haven’t reached yet.
Meanwhile hedge funds have accountants who ensure they never actually trigger a taxable event.
Billionaires borrow against assets instead of selling them.
Pay zero tax on billions in wealth.
Legally.
But a regular person tries to access their own retirement savings early because of an emergency?
30% penalty.
The tax code wasn’t written for you.
It was written around you.