No, yummyfajitas' numbers are right, given a 25% tax rate on capital gains and a 2.8% discount rate consuming immediately gives you 80% of income assuming you

No, yummyfajitas' numbers are right, given a 25% tax rate on capital gains and a 2.8% discount rate consuming immediately gives you 80% of income assuming you invested all of it, 80$ and made back 10$ which was then taxed at 25%, you're left with 87.5$ out of 110$ in total income. consuming after a year gives you 87.5/110 = 79.5% of income, 1 year in the future. After discounting at 2.8%, you're left with only 77.38% of income. In that case, you'd rather splurge than invest.