Poll:Tax advantage % of net worth

[HillCountry]

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.

 

[REWahoo]

Do you really mean net worth (including home, cars, etc.) or investable assets?

 

[pb4uski]

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!

 

[pb4uski]

Do you really mean net worth (including home, cars, etc.) or investable assets?

I think investable assets would be more relevant, but I responded based on net worth.

 

[bigcmagor]

31% of net worth and 43% of invested assets.

 

[HillCountry]

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.

 

[Senator]

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.

 

[HillCountry]

Currently 60%. Was 65% at the end of 2011.

Tax-deferred only was 55% at the end of 2011 and is currently 45%.

You seem to give 2 sets of number here.

And are you tapping into tax advantage account for living?

 

[LRDave]

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....)

 

[HillCountry]

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?

 

[Koogie]

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)

 

[Months.in.Wyoming]

We are 60% of investable and 26% of appreciating NW (includes real estate and private equity).

 

[Souschef]

RMD

I am over 70 1/2, so the RMD thing is hitting. However, the balance in my IRAs is still going up

 

[RockyMtn]

10.7% of net worth and 12.2% of investable assets.

 

[Rdub]

We are about 13% of investable and 10% of NW.

 

[scrabbler1]

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.

 

[kcowan]

35%
Did not know what to do with pensions so ignored them.

 

[jollystomper]

59% in tax advantaged accounts, not yet retired.

 

[pb4uski]

You seem to give 2 sets of number here.

And are you tapping into tax advantage account for living?

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.

 

[jkern]

About 30% of NW. 50% of investable assets counting rental RE. 85% of investment portfolio.

 

[Danmar]

Immaterial, under .5%. Ignored pensions. Wasn't eligible for the biggest tax deferred account (RSP).

 

[RetireAge50]

I guess 100%?

 

[FIREd]

About 10% of investable assets are held in IRAs (including Roth), less as a percentage of NW.

 

[stlguy57]

Of total investable assets, 83% in tax advantaged accounts. 17% in taxable brokerage account (1 stock).

 

[tmm99]

Around 68% of my NW.. I wish it were lower. Only 6% of that is in Roth IRA.