In Sir Terry Pratchett's 1993 Discworld novel

"Men at Arms," Captain Samuel Vimes laid out his grand economic theory: a rich man spends $50 on a pair of good leather boots that last ten years. A poor man, who can only afford $10 cardboard-soled boots, has to replace them every year.

After ten years, the rich man still has his expensive boots and dry feet. But the poor man has spent $100 and still has wet feet. As Vimes noted with characteristic cynicism, "The reason that the rich were so rich…was because they managed to spend less money."

Retirees on a fixed income face similar traps with their income taxes.

For instance, maxing out traditional 401(k)s and

IRAs to save on taxes during your working years feels like a sensible, frugal choice. But deferring taxes without a plan is the financial equivalent of buying cardboard-soled boots — it gives temporary relief today, only to push you into higher

federal tax brackets tomorrow.

The good news? You don't need a fortune in cash to keep your feet dry.…