Your invested assets: taxable vs TIRA/401k vs Roths

[Apex1]

Taxable: 92%
Tax Deferred: 8%
Tax Free: 0%

[braumeister]

25% taxable
41% deferred
34% tax-free

I made it a priority some years ago to move as much deferred into Roth as possible. Did a big conversion in 2010 since I could split the tax bill into the two following years.

[SteveL]

Taxable 25%
Deferred 50%
Tax Free 25%

Have moved about 30% of IRA to Roth through a series of partial conversions. In spite of this, IRA has more $ than it did when I began. 70.5 is looming on the horizon.......

[TallTim]

80% taxable
15% tax deferred
5% tax-free

Income and tax brackets while working take us out of ROTH and most IRA eligibility. Goal is to to both contributions and conversions in RE to increase tax free percentages before (if) SS income moves our tax bracket back up.

[RetiringAt55]

Taxable: 30%
Tax Deferred: 60%
Tax Free: 10%

Doing Roth conversions to try to get tax free amount closer to 30% by retirement for flexibility and to avoid huge RMDs.

[Ready]

16% tax free
16% tax deferred
68% taxable

I'm surprised at the number of members with little or no tax free investments. Have municipal bond funds become undesirable lately?

[haha]

Quote:

Originally Posted by Ready 16% tax free 16% tax deferred 68% taxable I'm surprised at the number of members with little or no tax free investments. Have municipal bond funds become undesirable lately?

I never thought of this interpretation. The way I meant the question had nothing to do with the investment chosen, but only the IRS classification of the account type.

My guess world be that of the many people with mostly taxable money, municipals would be very popular.

Ha

[dtbach]

Good topic! Made me do some calculations and my breakdown is:

26% taxable, 54% IRA and 19% ROTH

I have 10 years to 70 (and deferred SS) so am taking all my income out of my IRA's to deplete them rather than the other 2 pools of money. Since I still have a mortgage and teenagers, I have some decent deductions against the ordinary income this produces. My Fidelity advisor is aghast at the percentage I'm taking out of my IRA (about 12%/year) but I keep having to explain that my overall WR is only 3.6%

[RetireAge50]

Taxable 0%
Tax Deferred 85%
Roth 15%

[Andre1969]

Taxable: 55.3%
Tax Deferred: 35.9%
Roth: 8.7%

[aja8888]

Taxable = 23% (soon to be higher due to sale of a paid off house).
Tax deferred = 77% (% will drop after house sale above)
No Roth accounts

Pulling first RMD this year.
Full SS to cover most expenses.

[ERD50]

My breakdown is:

29% taxable, (very roughly 80% cost basis)
61% TIRA, and
10% Roths.

I did a quick estimate before I ran some quick formulas on my NW spreadsheet, I was close, but estimated my tax free much lower, so this is good.

The cost basis of that taxable is important. $1M in taxable with a $1M cost basis is a whole lot different than $1M with a $500K costs basis (I realize this can't all be captured easily in a simple post question - just throwing it out there for thoughts).

I also didn't think of the recent post issue - but I currently have no munis.

Good exercise. I knew roughly, but good to review. And now I have the formulas in my spreadsheet!

-ERD50

[coalcracker]

67% taxable
7% Roth IRA
26% 401k

[arky]

40% taxable
52% tax deferred (401K)
8% tax free (ROTH IRA)

Would do 401K to ROTH IRA conversions but am already in the 25% FIT bracket.

[dtbach]

Quote:

Originally Posted by ERD50 My breakdown is: 29% taxable, (very roughly 80% cost basis) 61% TIRA, and 10% Roths. I did a quick estimate before I ran some quick formulas on my NW spreadsheet, I was close, but estimated my tax free much lower, so this is good. The cost basis of that taxable is important. $1M in taxable with a $1M cost basis is a whole lot different than $1M with a $500K costs basis (I realize this can't all be captured easily in a simple post question - just throwing it out there for thoughts). I also didn't think of the recent post issue - but I currently have no munis. Good exercise. I knew roughly, but good to review. And now I have the formulas in my spreadsheet! -ERD50

Great point on the cost basis. I took a look at mine and I'm about 60% so actually only 40% of every dollar I take is taxable. Excellent observation!!

[Theseus]

Taxable 7.5%
Tax Deferred 92.4%
Tax Free 0.1%

[Animorph]

Taxable: 42.0%
401k/tIRA: 41.1%
Roth: 16.9%

Equities: 80.4%
Cash/incidental bonds: 19.6%
(cash will be spent over the next few years to return to nominal 100% equities)

That's adjusted for excess Roth conversions that will be recharacterized after taxes are filed.

[someguy]

Current Balances
taxable 52%
tax deferred 45%
tax free 2%

Current/Ongoing Contributions
taxable 67%
tax deferred 33%
tax free 0%

I imagine a higher current balance of taxable positively and strongly correlates to a higher income level, at least among those of us with earned income.

[TallTim]

Quote:

Originally Posted by someguy I imagine a higher current balance of taxable positively and strongly correlates to a higher income level, at least among those of us with earned income.

+1 to this. For many still working income and/or AMT tax treatment make most IRA and Roth options unavailable. 401k has a (relatively) low contribution limit in percentage terms for high earners ... so taxable is the easy other choice.

I realize you can do things like buy large $$ whole life policies to divert cash - but I have always viewed those returns as pretty tough to accept and the structure (if you don't die and want the $$) are too much like annuities for me.

Only other thing I have seen that is viable is a deferred compensation program - which not all companies have. We had one at my corp for the SR Execs, but ended up dropping it in view of the costs of the program and the very low participation rates.

[panhead]

Excluding Investment Real Estate:

taxable: 70%
deferred: 29%
free: 1%