Search found 8 matches

by diverdoc
Thu Jun 01, 2017 4:17 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable Account for emergency fund/house downpayment
Replies: 4
Views: 473

Re: Taxable Account for emergency fund/house downpayment

We saved for our home down payment in a taxable account by investing in Vanguard equity funds. We did not save in a savings account. Sure, this was riskier, but ... 1. We had no specific time frame to buy a house. We could wait many years and indeed we did ... after we moved from a high cost-of-liv...
by diverdoc
Thu Jun 01, 2017 4:01 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable Account for emergency fund/house downpayment
Replies: 4
Views: 473

Re: Taxable Account for emergency fund/house downpayment

I kind of think I understand what you are proposing, but the entire premise assumes you will have capital gains over a period of 3-4 years. That is far from guaranteed. It's easy to imagine the gains when we've been seeing year over year high returns for 7 years, but imagine if you spend the next 3...
by diverdoc
Thu Jun 01, 2017 10:00 am
Forum: Investing - Help with Personal Investments
Topic: Taxable Account for emergency fund/house downpayment
Replies: 4
Views: 473

Taxable Account for emergency fund/house downpayment

Hello, I'm still new to the Bogleheads forum but I've already gained a ton of valuable information/advice. I'm currently in the military and my wife is beginning a physician residency program this year. We have already saved up our emergency fund of 3 months worth of expenses and will be saving anyw...
by diverdoc
Fri May 19, 2017 4:52 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs pre-tax with higher income in the future
Replies: 10
Views: 962

Re: Roth vs pre-tax with higher income in the future

It's hard to predict future taxation, even if the bracket structure remains essentially the same. I'm in the low part of 28% Federal bracket in retirement after being in upper part of 25% bracket much of my working years. Had I retired five years earlier with less in tax deferred, I could have stay...
by diverdoc
Fri May 19, 2017 4:49 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs pre-tax with higher income in the future
Replies: 10
Views: 962

Re: Roth vs pre-tax with higher income in the future

You are correct in that it is better to contribute to Roth when your tax rate is lower. For you, that is now--lower pay while in the military and in training. You are correct in that early retirees can take advantage of Roth conversions since their income is lower. But at that time, the amount to b...
by diverdoc
Fri May 19, 2017 4:35 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs pre-tax with higher income in the future
Replies: 10
Views: 962

Re: Roth vs pre-tax with higher income in the future

Your current tax situation is unfamiliar territory. Tax deferred TSP is better if you plan to actually retire when eligible. Roth is probably better if you plan a second career after military retirement because wages + retirement pay will move you into 33% tax bracket. Target low taxable income yea...
by diverdoc
Thu May 18, 2017 2:03 am
Forum: Investing - Help with Personal Investments
Topic: Roth vs pre-tax with higher income in the future
Replies: 10
Views: 962

Re: Roth vs pre-tax with higher income in the future

Thanks for your reply! I was referring primarily for Roth vs "traditional" 401k (TSP) for myself. We file separately (at least for now) due to optimizing income-based loan payments w/ public service loan forgiveness in 10 years. We actually have multiple retirement account options which ma...
by diverdoc
Wed May 17, 2017 5:48 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs pre-tax with higher income in the future
Replies: 10
Views: 962

Roth vs pre-tax with higher income in the future

Greetings, I'm new to the Bogleheads forum but wanted to see if anyone might have some advice to help my wife and I as we start planning for retirement. After reviewing the articles and forum posts I hadn't seen something quite similar to our situation. I'm currently active duty in the Navy as a doc...

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