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Old 04-27-2014, 04:02 PM   #41
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Originally Posted by Animorph View Post
+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.
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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Old 04-27-2014, 04:48 PM   #42
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Originally Posted by pb4uski View Post
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.
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However, in my spreadsheet projection (which covers nearly 50 years), I estimate taxes at 20% of funds withdrawn from our IRAs.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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Old 04-27-2014, 04:55 PM   #43
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Says the guy who averages ~8 posts/day for 12 years straight.
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...
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Old 04-27-2014, 05:28 PM   #44
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You people need to find a worthwhile hobby...
Heh, heh, apparently, yer lookin' at it.
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Old 04-27-2014, 05:32 PM   #45
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Lest anyone envy this status, I'm sure DW and I would consider any reasonable offers to trade places, and put us back into the tax paying column.
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.
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Old 04-27-2014, 07:18 PM   #46
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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.
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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