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Poll: How much % taxable brokerage do you have?

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  • #16
    Originally posted by TheDangerZone View Post
    Just under 30% at the moment. Definitely growing.

    Wonder what the optimal proportion would be for an early retirement in your mid 40s.
    Don't think one exists as an isolated number; too many other factors.

    Currently at 79% in taxable. I wish I had more options for tax deferred (have cash balance, bRoth, HSA, and profit sharing plan).

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    • #17
      I have 60% taxable , I cant find any more ways to get it tax deferred.

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      • #18
        Originally posted by SLC OB View Post

        So you are assuming most physician make $500K/year? That is a pretty good salary, even for docs.

        If people have W2 and 1099 income, they can do $19.5K in 401K/457 and then in their i401K they can put in another $58K. What about a 401a with post-tax dollars that you then flip into your Roth (MegaBackDoor Roth)? That could be another $20K+. Then, if you have a spouse working in the same organization, then double that.
        Just my thoughts....
        But maybe that is because I have LOTS in my retirement accounts, LOTS in real estate and only a little in taxable.
        You don’t have have to assume a 500k physician salary. Some attending physicians really do spend what the average American family spends ~50k and that’s their baseline.

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        • #19
          35% taxable, 20% private investments, 20% crypto, 5% cash, 20% retirement

          Having a large taxable account is a very nice perk. Liquidity is something that most people don't factor in as much as they should, I think.

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          • #20
            Some have half in taxable and access to $19,500 per year in tax advantaged. Others have half in taxable and $100,000 per year tax advantaged space. Survey doesn't distinguish between them nor why it would be useful to know.

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            • #21
              Originally posted by Random1 View Post
              I have 60% taxable , I cant find any more ways to get it tax deferred.
              That is it exactly. You take advantage of the tax deferred/free space you have, and invest the rest in "taxable," because after all you still mostly get tax advantages for long term capital gains and qualified dividends.

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              • #22
                Originally posted by FIREshrink View Post
                Some have half in taxable and access to $19,500 per year in tax advantaged. Others have half in taxable and $100,000 per year tax advantaged space. Survey doesn't distinguish between them nor why it would be useful to know.
                I suppose it is just interesting conversation to see the wide spectrum, even among physicians who have the same job title.

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                • #23
                  Biggest variables are clearly just access to tax advantaged space and age.

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                  • #24
                    Originally posted by jhwkr542 View Post
                    Biggest variables are clearly just access to tax advantaged space and age.
                    And savings rate and income

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                    • #25
                      We didn't open a taxable account until last year. Prior to that my husband and I both had 14% of salary put into a 401a and we both had access to 403b's and 457's. So we had more tax free space than we could max out. Now we have the income to max out that space but we changed jobs and only have our 401k's. Kind of a bummer but I'm glad to have a taxable account.

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                      • #26
                        i'm in the minority, 1%, not a typo
                        we have always had access to huge tax protected space (>$100k/year) and never had a need to save much in taxable.

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                        • #27
                          Originally posted by MPMD View Post
                          i'm in the minority, 1%, not a typo
                          we have always had access to huge tax protected space (>$100k/year) and never had a need to save much in taxable.
                          Do you plan on early retirement or just going part time or what is your plan to transition? To me that seems to be the biggest purpose of taxable, to serve as a buffer so you don't have to pay penalties to access your tax protected money. That is the problem I'm envisioning for my future, a large tax-protected space which would theoretically enable early retirement however it wouldn't really be accessible without penalty for at least a decade or two beyond when that early retirement/part time date is.

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                          • #28
                            Originally posted by Panscan View Post

                            Do you plan on early retirement or just going part time or what is your plan to transition? To me that seems to be the biggest purpose of taxable, to serve as a buffer so you don't have to pay penalties to access your tax protected money. That is the problem I'm envisioning for my future, a large tax-protected space which would theoretically enable early retirement however it wouldn't really be accessible without penalty for at least a decade or two beyond when that early retirement/part time date is.
                            PhysicianOnFIRE has a couple of posts on how to access them penalty free. Plus you dont know how much of MPMD money is in 457 plans vs 401k/403b vs roth so there are multiple ways he can access it if he wants.
                            if you choose to slow down the fire and go part time as your "early retirement", you might be able to work just enough to cover expenses while letting your accounts continue to grow tax free- someone at my workplace (anesthesia) is 60, doing 28 weeks a year with no call to maintain bennies and cover expenses. With radiology that may be a possibility.

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                            • #29
                              Having a large taxable account helps but there are lots of ways to get your money out penalty free. But most physicians who are planning early retirement are probably outsaving their tax deferred limits.

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                              • #30
                                Also what is early retirement age? Many would consider age 54 or 55 early retirement, and you can pull money out of your 401k penalty free if you quit at age 54 because you can pull money out in the year you turn 55 as long as you quit

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