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View Poll Results: Tax advantage % of net worth
<10% 14 10.53%
10% to 20% 18 13.53%
20% to 30% 11 8.27%
30% to 40% 20 15.04%
40% to 50% 10 7.52%
50% to 60% 23 17.29%
60% to 70% 15 11.28%
70% to 80% 11 8.27%
80% to 90% 4 3.01%
> 90% 6 4.51%
Don't know. 1 0.75%
Voters: 133. You may not vote on this poll

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Old 12-10-2016, 03:35 PM   #41
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Originally Posted by MooreBonds View Post
Still in accumulation mode, about 10 years pre-FIRE:

10% Tax-free (ROTH/HSA)
21% Tax-deferred (SEP IRA/401k rollover/Traditional IRA/Inherited IRA)
31% Total tax-advantage
Actually, because of my future wife's pension, I suppose you could say that her pension is about equal to the earning power of my stash in terms of dividends. Also, there is the (much smaller) 'equivalent' effect of your Social Security payments.

Excluding SS effects, you could say my "equivalent" percentages, taking into account her pension, would be:

5% tax-free (ROTH/HSA)
10% tax-deferred
15% Total tax-advantage
35% After-Tax
50% "Pension-equivalent"

She gets zero SS, mine would be enough to splurge once-a-month on perhaps a flight and hotel stay somewhere cheap. Not enough to change our strategy with (or adjust the above percentages), but enough to definitely factor in our spending plans.
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Old 12-10-2016, 04:48 PM   #42
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Looks like 58% of investment assets in tax advantage accounts. I'm 53 and not scheduled to pull money until age 68. May pull money out earlier if markets turn ugly and/or if there are tax advantages to do Roth conversions.
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Old 12-10-2016, 05:15 PM   #43
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I used net worth including home equity and was at about 68%. Not including home equity it would be above 90%. Note that we are the withdrawal phase and deliberately spent down our non-tax advantaged assets a couple of years ago.
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Old 12-10-2016, 05:16 PM   #44
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Where should one count I-bonds? Probably tax-advantaged?
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Old 12-10-2016, 05:38 PM   #45
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Where should one count I-bonds? Probably tax-advantaged?
I didn't. It's not quite like an IRA where you have to pay taxes on the entire withdrawal. Just that the accumulating interest is deferred until you redeem it making it similar to selling a non-dividend paying asset and paying taxes only on any capital gain. Of course, you are paying at ordinary income rates, not capital gains tax rates.

It's a bit of a hybrid, obviously. But I only included IRAs and 401Ks in my tax deferred.

Muni bonds are technically tax-advantaged as well, but I didn't include them either.
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Old 12-10-2016, 07:43 PM   #46
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95% of investable assets are in tax advantaged accounts.

I'm surprised there are so few people reporting high percentages. But lumping Roth (awesome wrt taxation) with 401k (kill me now wrt taxation) is kind weird.

How about percent between the two? I've got 18% of the 95% in Roth/HSA.
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Old 12-10-2016, 09:53 PM   #47
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86% of investable. 83% of investable+House

(Roths and HSA only about 4% of investable as of now.)

Very lopsided, but we will never come near our working marginal rates in retirement; thus, a good tradeoff.
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Old 12-11-2016, 08:22 AM   #48
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Wasn't eligible for the biggest tax deferred account (RSP).
Yes we were limited to $3500 a year most of the working life but still got to over $600K. Thank you Mr Market!
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Old 12-11-2016, 09:26 AM   #49
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I personally track this as: Taxable, Tax Deferred and Non-Taxable (ROTH/HSA)

Currently a 68/24/8 split. And am actively working on ROTH conversions and funding HSA.

I also have a section in my tracking spreadsheet where I track our potential pending tax liability: both accumulated capital gains in the taxable accounts and the IRAs.
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Old 12-11-2016, 09:49 AM   #50
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34% of net worth is in tax deferred investments.

My (and DW) IRAs, 401ks make up 60% of total investable assets.

I have no Roth yet, but plan to begin converting some $$ this year. I have a small HSA.
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Old 12-11-2016, 10:01 AM   #51
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Originally Posted by mpeirce View Post
I personally track this as: Taxable, Tax Deferred and Non-Taxable (ROTH/HSA)

Currently a 68/24/8 split. And am actively working on ROTH conversions and funding HSA.

I also have a section in my tracking spreadsheet where I track our potential pending tax liability: both accumulated capital gains in the taxable accounts and the IRAs.
By taxable do mean investments where only the dividends and interest are taxable, the principal being after-tax. (eg CD's Bonds, Funds in after tax brokerage accounts etc).
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Old 12-11-2016, 10:28 AM   #52
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Quote:
Originally Posted by sengsational View Post
95% of investable assets are in tax advantaged accounts.

I'm surprised there are so few people reporting high percentages. But lumping Roth (awesome wrt taxation) with 401k (kill me now wrt taxation) is kind weird.

How about percent between the two? I've got 18% of the 95% in Roth/HSA.
Very good.

We have 93% in tax advantaged. 34% in Roth.

But wait, there's more ... of that other 7% almost all of that is in iBonds with 15 years to go before the 30 year maturity.

Still, when RMD's come around in a few years we'll pay higher federal taxes. Not complaining.
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Old 12-11-2016, 10:42 AM   #53
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Good survey question!

78% Tax-deferred
11% Roth
3% After-tax/taxable
8% Residential Real Estate

Am just starting to draw on the tax-deferred accounts and plan to lower their percentage of the total before RMDs start (11 years away). Expect RMDs to be living expense needed, rather than just forced withdrawals.
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Old 12-11-2016, 11:26 AM   #54
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65% tax deferred.
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Old 12-11-2016, 11:43 AM   #55
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Most of our savings is in tax deferred or tax advantaged accounts. I inherited an IRA - and draw an RMD on it each year. DH is in his mid-60's and we have unfettered access to his IRAs. We also have tax advantaged accounts like 529's and HSAs.

Since our taxable income is less than when we are working - we're still not in a high tax bracket... lower than when we were working and maxing out our 401k/IRAs.

My home is a significant portion of my net worth... But since I don't plan on moving, I don't consider it in these calculations usually.
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Old 12-11-2016, 12:21 PM   #56
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> Taxable, Tax Deferred and Non-Taxable

Quote:
Originally Posted by Alan View Post
By taxable do mean investments where only the dividends and interest are taxable, the principal being after-tax. (eg CD's Bonds, Funds in after tax brokerage accounts etc).
My definitions:

Tax Deferred - tIRAs, money that we pay taxes on when we access it
Non-Taxable - ROTH IRAs & HSAs, money we can access without tax events
Taxable - pretty much everything else, sell a stock/fund and pay CG tax; receive dividends or interest and pay taxes on that; use principle tax free
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Old 12-12-2016, 10:26 AM   #57
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There are more flavors of tax deferred....ones funded with after-tax money and ones funded with pre-tax money. The latter is easy, since every dollar coming out would get taxed. But the former would need to get split into your original investment and the gains on that investment.
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Old 12-12-2016, 10:34 AM   #58
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Isn't that great? Congress creates this complex tax system, so that the citizens spend a lot of their time playing the shell game, and that takes their mind of other matters.

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Old 12-12-2016, 11:29 AM   #59
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I don't think Congress is that smart to say "hey, let's make a complicated system to distract the populace." The problems are that, even though the concept of much of this stuff is logical, the implementation and the "corner cases" all have to be dealt with. And the other problem is that they never completely get rid of anything, or if they try to get rid of something, they have a phase-out and that adds complexity for the years that's in effect. No doubt it's a mess, and it's distracting, but I think most of the populace stops-by the dancing statue of liberty and that's the first and last time they think about it.
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Old 12-12-2016, 12:28 PM   #60
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56% Tax-deferred
2% Roth/HSA
31% After-tax/taxable
11% Residential Real Estate
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