Looking for some outside views to check my current approach/strategy to maximizing my taxable accounts. Some info that may help...
- 4 to 5 yrs from FIRE the way I want to do it, currently 51
- self employed sole earner of family
- maximize retirement plans every year
- only debt is primary residence at $350k, house worth about $850k. Main reason I don't pay off is interest rate is around 3% so $$ earn more in market/investments (in theory anyways). Plans are to downsize and pay cash for next house once FIREd.
- while income fluctuates, it is high and I am saving/investing a significant amount (generally 30% - 50% per yr, just depends)
- paying for 2 last kids in college (another 4 yrs of costs), so most of my heavy lifting will be completed by FIRE, hence my targeted FIRE dates
- have 2 more girl weddings/1 boy wedding in the hopper, just knocked out 1 girl this yr... damn those girls are expensive!
- all my Retirement income will come from my investments (AA, RE)
- for retirement accounts, I had set up a Defined Benefit plan that has been very lucridive and provided significant tax benefits for me over the years, however, this will be my last year as I have hit the max in the account. This will effectively leave me with a SEP or 401k going forward.
Since I am still working, I basically pull out a years worth of expenses and keep that essentially in cash and then look at my over AA based on the remaining investments (taxable & tax differed, as well as my RE investments). With my Defined Benefit plan going away, a high income, and significant $ (7 figures) in taxable accounts, I am running out of ideas on ways to minimize my taxes on both my taxable accounts and income for that matter. What are you all doing to maximize your taxable accounts in terms of investments that give you respectable returns with the least amount of taxable consequences? I am always looking at RE deals, but the markets are very frothy right now so pickings are thin. By the way, I am not complaining and feel very lucky to be in this position, I am just tax adverse.
- 4 to 5 yrs from FIRE the way I want to do it, currently 51
- self employed sole earner of family
- maximize retirement plans every year
- only debt is primary residence at $350k, house worth about $850k. Main reason I don't pay off is interest rate is around 3% so $$ earn more in market/investments (in theory anyways). Plans are to downsize and pay cash for next house once FIREd.
- while income fluctuates, it is high and I am saving/investing a significant amount (generally 30% - 50% per yr, just depends)
- paying for 2 last kids in college (another 4 yrs of costs), so most of my heavy lifting will be completed by FIRE, hence my targeted FIRE dates
- have 2 more girl weddings/1 boy wedding in the hopper, just knocked out 1 girl this yr... damn those girls are expensive!
- all my Retirement income will come from my investments (AA, RE)
- for retirement accounts, I had set up a Defined Benefit plan that has been very lucridive and provided significant tax benefits for me over the years, however, this will be my last year as I have hit the max in the account. This will effectively leave me with a SEP or 401k going forward.
Since I am still working, I basically pull out a years worth of expenses and keep that essentially in cash and then look at my over AA based on the remaining investments (taxable & tax differed, as well as my RE investments). With my Defined Benefit plan going away, a high income, and significant $ (7 figures) in taxable accounts, I am running out of ideas on ways to minimize my taxes on both my taxable accounts and income for that matter. What are you all doing to maximize your taxable accounts in terms of investments that give you respectable returns with the least amount of taxable consequences? I am always looking at RE deals, but the markets are very frothy right now so pickings are thin. By the way, I am not complaining and feel very lucky to be in this position, I am just tax adverse.