View Poll Results: Tax advantage % of net worth
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<10%
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14 |
10.53% |
10% to 20%
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18 |
13.53% |
20% to 30%
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11 |
8.27% |
30% to 40%
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20 |
15.04% |
40% to 50%
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10 |
7.52% |
50% to 60%
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23 |
17.29% |
60% to 70%
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15 |
11.28% |
70% to 80%
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11 |
8.27% |
80% to 90%
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4 |
3.01% |
> 90%
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6 |
4.51% |
Don't know.
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1 |
0.75% |
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Poll:Tax advantage % of net worth
12-10-2016, 07:32 AM
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#1
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Recycles dryer sheets
Join Date: May 2011
Location: Austin
Posts: 375
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Poll:Tax advantage % of net worth
My holdings in tax advantaged accounts were at 70% of my net worth 10 years ago. Today they are just a bit above 15%.
In the order of size, we have my IRA, DW IRA, my 401K, 529, DW Roth, my Roth, HSA.
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12-10-2016, 07:45 AM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,004
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Do you really mean net worth (including home, cars, etc.) or investable assets?
__________________
Numbers is hard
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12-10-2016, 07:46 AM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,266
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Currently 60%. Was 65% at the end of 2011.
Tax-deferred only was 55% at the end of 2011 and is currently 45%.
Most interestingly, after 5 years of retirement and essentially no income other than investment income, our net worth is 23% higher than when I retired 5 years ago.
Thank you, Mr. Market!
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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12-10-2016, 07:47 AM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,266
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Quote:
Originally Posted by REWahoo
Do you really mean net worth (including home, cars, etc.) or investable assets?
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I think investable assets would be more relevant, but I responded based on net worth.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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12-10-2016, 07:53 AM
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#5
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Recycles dryer sheets
Join Date: Oct 2015
Location: Indiana/Florida
Posts: 318
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31% of net worth and 43% of invested assets.
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12-10-2016, 07:58 AM
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#6
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Recycles dryer sheets
Join Date: May 2011
Location: Austin
Posts: 375
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Both net worth and investable make sense. Maybe somebody should do a poll on investable vs NW.
Many people have rentals. So NW definitely makes sense. Other people in HCOL may count on their current residence for retirement.
For this poll, title says NW.
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12-10-2016, 08:01 AM
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#7
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
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If you do not count real estate, I have about 60% in tax advantaged accounts. 25% of that in a Roth, and 75% in IRA/401Ks.
Of course real estate is plenty tax advantaged. Real estate is about 60% of my NW and 100% of my income now.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
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12-10-2016, 08:05 AM
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#8
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Recycles dryer sheets
Join Date: May 2011
Location: Austin
Posts: 375
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Quote:
Originally Posted by pb4uski
Currently 60%. Was 65% at the end of 2011.
Tax-deferred only was 55% at the end of 2011 and is currently 45%.
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You seem to give 2 sets of number here.
And are you tapping into tax advantage account for living?
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12-10-2016, 08:10 AM
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#9
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Thinks s/he gets paid by the post
Join Date: Aug 2010
Location: Back woods of Fennario
Posts: 1,170
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I took my vacation/retirement home (paid for) out of the equation. When the time comes to sell it, it will be a sad day and desperate times - and hopefully something for my heirs to struggle with. So I don't even think of it as an asset - only a source of ongoing expense.
I did count the equity in my current home in the non-tax advantaged column.
I don't own any rental property (shudder!) and didn't consider any other asset as meaningful for a back-of-napkin calculation.
So mostly investable assets + home equity = 70%ish tax-advantaged.
(not retired yet DW will retire this in 2017 and I'm thinking about it....)
__________________
"Time wounds all heels...." - Groucho Marx
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12-10-2016, 08:11 AM
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#10
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Recycles dryer sheets
Join Date: May 2011
Location: Austin
Posts: 375
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Senator, all business have tax advantage. Agreed that RE has more loopholes, e.g. depreciation. I guess you are not required to pay much tax on your current income? :-)
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12-10-2016, 08:12 AM
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#11
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Thinks s/he gets paid by the post
Join Date: Nov 2007
Location: GTA
Posts: 1,726
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Currently 19% but it will "jump" to 22% in January.
For one, I will be making our full yearly contributions to our TFSAs (Roth IRAs)
For two, I will be repaying our Home Buyer Plan loans to our RRSPs(401ks).
(in Canada we are allowed to remove 25K each from these plans to purchase a home. Loan is repayable to yourself over a 15 year term but I want the money back in there to compound tax free ASAP)
__________________
Family Motto: "Every penny's a prisoner"
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12-10-2016, 08:12 AM
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#12
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Dryer sheet aficionado
Join Date: Jul 2011
Location: St. Louis
Posts: 38
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We are 60% of investable and 26% of appreciating NW (includes real estate and private equity).
__________________
When in doubt, hike a mountain...
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12-10-2016, 08:17 AM
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#13
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Thinks s/he gets paid by the post
Join Date: Dec 2015
Location: Santa Paula
Posts: 4,070
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RMD
I am over 70 1/2, so the RMD thing is hitting. However, the balance in my IRAs is still going up
__________________
Retired Jan 2009 Have not looked back.
AA 60/35/5 considering SS and pensions a SP annuity
WR 2% with 2SS & 2 Pensions
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12-10-2016, 08:17 AM
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#14
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Thinks s/he gets paid by the post
Join Date: Jul 2009
Location: North Scottsdale
Posts: 1,545
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10.7% of net worth and 12.2% of investable assets.
__________________
FIRE'D in July 2009 at 51...Never look back!
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12-10-2016, 08:20 AM
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#15
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Recycles dryer sheets
Join Date: May 2014
Posts: 145
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We are about 13% of investable and 10% of NW.
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12-10-2016, 08:26 AM
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#16
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2009
Posts: 6,682
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At the end of my working days, I had about 2/3 of my investments in tax-advantaged accounts. That consisted of 1/3 401k, 1/3 company stock, and 1/3 taxable account. When I ERed, I took the 1/3 company stock and cashed it out so it could join the taxable account. So, now my taxable account is about 2/3 of my total amount, leaving just over 1/3 in my tax-advantaged account.
Real estate, or my co-op apartment, is a pretty small percent of my total NW. I would have answered 30%-40% in the poll either way.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.
"I want my money working for me instead of me working for my money!"
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12-10-2016, 08:28 AM
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#17
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 7,677
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35%
Did not know what to do with pensions so ignored them.
__________________
For the fun of it...Keith
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12-10-2016, 08:44 AM
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#18
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2012
Posts: 6,135
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59% in tax advantaged accounts, not yet retired.
__________________
FIREd date: June 26, 2018 - "This Happy Feeling, Going Round and Round!" (GQ)
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12-10-2016, 08:56 AM
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#19
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,266
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Quote:
Originally Posted by HillCountry
You seem to give 2 sets of number here.
And are you tapping into tax advantage account for living?
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Yes, two sets of numbers. First is tax-advantaged (tax-deferred tIRAs and tax-free Roths/HSAs). The second is only tax-deferred.
Two time points for each set... currently and end of 2011.
While we are not living on tax-deferred we are doing Roth conversions to the top of the 15% tax bracket... so taxable and tax deferred as a percent of the total are declining and tax-free is increasing.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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12-10-2016, 09:47 AM
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#20
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Full time employment: Posting here.
Join Date: Apr 2011
Location: Castro Valley
Posts: 788
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About 30% of NW. 50% of investable assets counting rental RE. 85% of investment portfolio.
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