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04-27-2014, 04:02 PM
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#41
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Recycles dryer sheets
Join Date: Oct 2011
Posts: 106
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Quote:
Originally Posted by Animorph
+1 for comparisons.
For myself, I track taxable cost basis and calculate taxes for each year in my projections. For a simple net worth calculation I count only 85% of IRA's versus 100% of Roths and taxable.
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I would think that funds in Roths are worth a bit more than taxable, since you won't have to pay taxes on earnings.
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04-27-2014, 04:48 PM
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#42
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Recycles dryer sheets
Join Date: Dec 2010
Posts: 63
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Quote:
Originally Posted by pb4uski
My spreadsheet projections include a mini tax return that computes taxable income and federal and state taxes so my taxes are in my expenses for planning purposes.
However if I was doing a formal net worth calculation I would do a deferred tax liability for my tax-deferred accounts and for unrealized gains and losses on my taxable accounts.
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I do a mini tax return projection for the current year and the following year (rolling over each year).
However, in my spreadsheet projection (which covers nearly 50 years), I estimate taxes at 20% of funds withdrawn from our IRAs. This will obviously get refined as time goes on, but seems to be a reasonable estimate today. Our tax rate last year was 12% (state/federal combined). BTW, we do not estimate taking money out of our IRAs for another 20 years.
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04-27-2014, 04:55 PM
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#43
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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I respectfully have to disagree with both of you.
While I average only 4.5 posts per day, I think that posting here is very wholesome: amortizing the subscription fee over the number of posts shows me that this hobby is very low cost, while the entertainment value is much higher than I have seen on TV and printed media such as People, the National Enquirer, etc...
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
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04-27-2014, 05:28 PM
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#44
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 17,809
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Heh, heh, apparently, yer lookin' at it.
__________________
Ko'olau's Law -
Anything which can be used can be misused. Anything which can be misused will be.
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04-27-2014, 05:32 PM
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#45
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 17,809
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I suspect there are some folks still w*rking who would take you up on this offer. Win-win. They get to ER and you get to pay taxes. Wait! Forget what I said.
__________________
Ko'olau's Law -
Anything which can be used can be misused. Anything which can be misused will be.
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04-27-2014, 07:18 PM
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#46
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Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 4,366
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Quote:
Originally Posted by sunsnow
I would think that funds in Roths are worth a bit more than taxable, since you won't have to pay taxes on earnings.
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OK, you made me look. My projections do subtract (current value - basis value) * default capital gains rate from taxable equities when calculating net worth. Must have been bored some time in the past.
Currently my basis is about 90% of the current value, so it's only a 1.5% hit. And I'm busy spending the taxable accounts, so they won't have long to grow.
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