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Your invested assets: taxable vs TIRA/401k vs Roths
01-15-2014, 09:55 PM
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#1
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
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Your invested assets: taxable vs TIRA/401k vs Roths
I know from experience that there will always be some ambiguity in a question, no matter how hard I try to be specific. What I am looking for here, and thought others might also find interesting, is of all your investable assets, what portion are subject to taxes on their earnings and capital gains (taxable accounts), what portion deferred taxes, such as 401K or TIRA, and what part free of any tax liability under current law, such as Roth or Roth 401K?
My breakdown is 76% taxable, 16 % TIRA, and 8% Roths.
Ha
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01-15-2014, 10:04 PM
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#2
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Full time employment: Posting here.
Join Date: Sep 2011
Location: Bushnell
Posts: 605
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82% taxable
18% tax deferred
0% tax free.
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01-15-2014, 10:06 PM
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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: Feb 2011
Location: NC Triangle
Posts: 5,668
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I currently have about 30% of my retirement assets in Roth (because they made 401/403 available while I was still working, and I went all in).
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01-15-2014, 10:06 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Mar 2010
Posts: 1,973
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My breakdown is:
76.4% in taxable accounts, 23.6% in tax deferred accounts and 0% free of any tax liability. (darn it!)
I did not qualify for Roths and have not done Roth conversions since my tax rate was so high and the conversion calculation takes all deferred money into it. Not sure my tax rate will ever be lower but I'm on the look out for it this year and going forward.
Good question Ha!
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01-15-2014, 10:13 PM
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#5
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Moderator Emeritus
Join Date: May 2007
Posts: 12,876
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Not including investment real estate: 80% taxable, 20% tax-deferred, 0% tax-free.
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01-15-2014, 10:18 PM
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#6
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Recycles dryer sheets
Join Date: Oct 2013
Posts: 52
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Taxable accounts: 78%. Tax deferred: 22% Tax free: 0.
No real estate or NPV of small pension included.
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01-15-2014, 10:23 PM
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#7
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Dryer sheet aficionado
Join Date: Jun 2012
Posts: 48
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I'm about 50/50 between 401k and taxable index funds. I'm 35, and trying to catch up on retirement savings so I can glide down to early retirement as soon as possible.
One of my open questions ... given that I can't (easily) touch the 401k 'till retirement age ... should I just make minimum contributions to get company matching or max it out, even though it means making fewer contributions to my taxable index funds?
I'm not quite sure how to model the safe withdrawal rate given that I probably shouldn't touch the 401k bit 'till I'm older.
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01-15-2014, 10:25 PM
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#8
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2005
Location: Chicago
Posts: 12,704
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50% taxable
44% defered
6% tax free
Wish I had more in the Roth.
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"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
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01-15-2014, 10:35 PM
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#9
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Feb 2011
Location: NC Triangle
Posts: 5,668
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 Quote:
Originally Posted by RetireAbroadAt35
One of my open questions ... given that I can't (easily) touch the 401k 'till retirement age ... should I just make minimum contributions to get company matching or max it out, even though it means making fewer contributions to my taxable index funds?
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I wish I'd had a match. You should take it, assuming you will be around long enough to vest.
Near the end for me I was selling taxable funds to make up income as I was plowing a lot into 403 and 457.
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01-15-2014, 10:35 PM
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#10
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Full time employment: Posting here.
Join Date: Jan 2008
Posts: 733
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48% taxable
48% tax deferred
4% tax free
Would convert to Roth if not for college cost on the near horizon.
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01-15-2014, 11:02 PM
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#11
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Thinks s/he gets paid by the post
Join Date: Jul 2005
Location: Los Angeles area
Posts: 1,698
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1% taxable
99% tax deferred
__________________
learn, work, save, invest, fire
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01-15-2014, 11:08 PM
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#12
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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: 33,587
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40% taxable; 52% tax deferred; 8% tax-free
I was late to the Roth/HSA party, but with annual Roth conversions the tax-deferred will decline and the tax-free will increase. Taxable will decline with living expense withdrawals and paying taxes on Roth conversions. I expect to be tilted towards tax-free when SS starts.
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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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01-15-2014, 11:09 PM
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#13
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Recycles dryer sheets
Join Date: Jul 2013
Location: Cocoa Beach
Posts: 414
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Current Taxable: 34.5%, Current Tax-Deferred: 65.5%
Projected at Retirement (2017): Taxable: 44.6%, Tax-Deferred: 55.4%
They just opened up Roth's, and Roth conversions, within my 401K this year so I am currently looking into that to see if it would be best for us in the long-run so may end up with Tax Free also. Plan on also doing some Roth conversion after we retire in 2017 (age 50) to 2027 etc.
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01-15-2014, 11:19 PM
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#14
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Thinks s/he gets paid by the post
Join Date: Jun 2010
Posts: 2,301
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53% taxable, 47% tax deferred, 1% tax-free
The 1% in roth came when I was eligible to contribute during grad school. Haven't been able to since then.
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01-15-2014, 11:33 PM
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#15
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Full time employment: Posting here.
Join Date: Jan 2013
Posts: 680
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10% taxable
62% tax deferred
28% tax free
The tax deferred portion is already starting to decline, since I've begun regular monthly distributions from my 457 plan.
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01-15-2014, 11:59 PM
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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: Jul 2008
Posts: 34,831
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74% tax deferred
23% taxable
3% Roth
By the way, I made a poll a while back asking the same question, but without the Roth option. The response distribution is nearly evenly spread out from 0% taxable to 100%.
See: http://www.early-retirement.org/foru...lio-64714.html
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"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
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01-16-2014, 05:58 AM
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#17
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Thinks s/he gets paid by the post
Join Date: Jul 2009
Posts: 1,934
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44% taxable
49% tax deferred
7% Roth
__________________
And if I claim to be a wise man, it surely means that I don't know.
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01-16-2014, 06:55 AM
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#18
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Full time employment: Posting here.
Join Date: May 2010
Posts: 996
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88% tax deferred
8% taxable
4% Roth
__________________
Wherever you go, there you are.
(In other words, no whining!)
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01-16-2014, 07:06 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: Jan 2008
Location: NC
Posts: 19,346
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63% taxable
37% tax deferred
0% tax free (but Roth conversions are under serious consideration)
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No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 40% bonds / 10% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
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01-16-2014, 07:08 AM
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#20
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Dryer sheet wannabe
Join Date: Mar 2011
Posts: 22
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Taxable: 19%
Tax Deferred: 71%
Tax Free: 10%
Will be looking to move $$ from Tax Deferred to Roth during retirement
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