Search found 8639 matches

by KlangFool
Sun May 20, 2018 9:46 am
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

Can you give some reasonable example where ROTH wins and does not depend upon very unlikely conditions? Obviously apart from brain-surgeon-in-residence cases? :-) Seriously, I am hard pressed to come up with other scenario. We just had somebody do the calculations to come up with once you go over "...
by KlangFool
Sun May 20, 2018 4:13 am
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

Can you give some reasonable example where ROTH wins and does not depend upon very unlikely conditions? Obviously apart from brain-surgeon-in-residence cases? :-) Seriously, I am hard pressed to come up with other scenario. We just had somebody do the calculations to come up with once you go over "...
by KlangFool
Sat May 19, 2018 9:31 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

Can you give some reasonable example where ROTH wins and does not depend upon very unlikely conditions? Obviously apart from brain-surgeon-in-residence cases? :-) Seriously, I am hard pressed to come up with other scenario. We just had somebody do the calculations to come up with once you go over "...
by KlangFool
Sat May 19, 2018 9:23 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

Can you give some reasonable example where ROTH wins and does not depend upon very unlikely conditions? Obviously apart from brain-surgeon-in-residence cases? :-) Seriously, I am hard pressed to come up with other scenario. We just had somebody do the calculations to come up with once you go over "...
by KlangFool
Sat May 19, 2018 5:47 pm
Forum: Personal Finance (Not Investing)
Topic: Helping Adult Children (but not too much)
Replies: 95
Views: 6481

Re: Helping Adult Children (but not too much)

Our daughter graduates college this weekend. She's debt free, owns her 3 year-old car outright, has about $3K in a Roth-IRA plus another $1K in savings and an "okay" (money-wise) job lined up. So she off to a decent start. Until now we've subsidized her through car insurance, mobile phone, grocerie...
by KlangFool
Sat May 19, 2018 10:37 am
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

...P.S.: You are wrong. There is an RMD requirement for Roth 401K. https://www.investopedia.com/articles/retirement/06/moreonroth401k.asp Let's use a more authoritative (and current) source: Roth Comparison Chart | Internal Revenue Service Distributions must begin no later than age 70½, unless stil...
by KlangFool
Sat May 19, 2018 10:27 am
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

The Roth 401k is the clear winner if you consider the lump sum (not the yearly income) and roll that into a Roth IRA at retirement. No RMD Want to pay for a grandkid's college: 0 tax Want to pay for a house: 0 tax Need to pay for long term care: 0 tax Unknown large expense: 0 tax Die: 0 tax (assumi...
by KlangFool
Sat May 19, 2018 9:31 am
Forum: Investing - Theory, News & General
Topic: Discontinuity and marginal vs effective rates
Replies: 39
Views: 1608

Re: Discontinuity and marginal vs effective rates

OP, We should always start with a goal in mind. So, this particular topic/thread is about doing the analysis in order to decide what? A) Contribute more to tax-deferred account? B) Deciding how much taxable income to generate for each year during retirement? C) Something else. Depending on the conte...
by KlangFool
Sat May 19, 2018 8:56 am
Forum: Investing - Help with Personal Investments
Topic: Need Help Deciding Between Non-Matching 403(b) and a Roth IRA
Replies: 21
Views: 1027

Re: Need Help Deciding Between Non-Matching 403(b) and a Roth IRA

At this point, does it make sense for me to open a non-matching 403(b) from my employer or a Roth IRA? I'm not sure if it's better for me to pay the taxes now or later. A lot of teachers I know just use AXA and have them decide everything, but I've read horror stories about them, and hear they have...
by KlangFool
Sat May 19, 2018 8:13 am
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

Is there any particular reason you think the CFA/financial planning community isn't saying this? Most of them (just personal observation) advocate the Roth. Or how about good ole Ed Slott as another example; "go from forever tax to never tax!" I'm pretty sure Tony Robbins in his latest financial bo...
by KlangFool
Fri May 18, 2018 10:28 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

Klangfool, (or anyone else who understands this) Can you please go over again why it makes sense to direct money into Roth 401K once the tax deferred account reaches $1M? Or some magic number? How do figure that number? Oh, and I've not gotten to the "OMG, I get it". Actually getting more confused....
by KlangFool
Fri May 18, 2018 9:54 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

This needs to be repeated. Even after 10 years since mptfan posted this, it is still true (may be except taxes always going up part but nobody could have guessed otherwise at that time) <snip> Unfortunately mptfan got the first point wrong, while Redbeard and Greenberry (see their posts in that thr...
by KlangFool
Fri May 18, 2018 9:49 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

Klangfool, (or anyone else who understands this) Can you please go over again why it makes sense to direct money into Roth 401K once the tax deferred account reaches $1M? Or some magic number? How do figure that number? Oh, and I've not gotten to the "OMG, I get it". Actually getting more confused....
by KlangFool
Fri May 18, 2018 9:40 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

peseta, Come on. So, this person has 1 million in the tax-deferred account and he is worrying that he has an additional ( 40K/25) ~ $1,600 income over the 22% tax bracket? Please note that the actual number is 1.25 million or higher. 1 million is safe enough. Please note that if this person has 1 m...
by KlangFool
Fri May 18, 2018 9:14 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

Why someone in the 12% tax bracket chooses to pay 12% tax instead of 0% or getting a tax refund? At that tax bracket, if someone contributes enough to the Trad. 401K, they could qualify for tax credits such as Saver's Credit or EITC? https://www.bogleheads.org/wiki/Saver%27s_credit https://www.irs....
by KlangFool
Fri May 18, 2018 9:10 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

I do not understand why you say that? Both employer and employee contribution are added together for that 1 million. I was suggesting that it could change one's stopping point. Let's hypothetically say someone hits $1m in traditional 401(k) at age 55, but plans to work 7 more years. From age 55-62,...
by KlangFool
Fri May 18, 2018 8:47 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

I think the devil's advocate position would be for, say, someone in the current 12% tax bracket: 12% federal tax is *cheap.* Even if there is a chance you would have been better off putting money in tax-deferred, take the bird in the hand now and do Roth. peseta, Why someone in the 12% tax bracket ...
by KlangFool
Fri May 18, 2018 8:40 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

So, you should realize by now. Many folks that recommend Roth 401K as the correct answer for most people are simply wrong. Actually, the reverse is true. Roth 401K is the wrong answer for 90+% of people since only 10% of the US Household has a net worth of 1 million or more. Out of those households...
by KlangFool
Fri May 18, 2018 8:11 pm
Forum: Investing - Theory, News & General
Topic: Which AA do people draw from in retirement?
Replies: 17
Views: 1416

Re: Which AA do people draw from in retirement?

It's hard to answer your question without more context. Tax implications depend more on the type of the account than the type of investment in the account. Many people withdraw from taxable accounts until they have to withdraw from retirement accounts. Many people use withdrawals as an opportunity ...
by KlangFool
Fri May 18, 2018 8:05 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

1) Only 85% of the social security income is taxable. https://taxfoundation.org/2018-tax-brackets/ 2) The standard deduction is 24K. For a married couple, you need another 77K before you reach 22% tax bracket. So, you need about 100K of income. Let's be generous and assume that the Social Security ...
by KlangFool
Fri May 18, 2018 7:56 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

I disagreed. For a married couple, you need at least 1M before you can reach the 22% tax bracket at retirement. For a single person, you need at least 500K. A-ha, sorry for being slow on the uptake, now I get your reasoning. 22% married bracket starts at $77.4k. Subtract $24k standard deduction and...
by KlangFool
Fri May 18, 2018 7:26 pm
Forum: Investing - Theory, News & General
Topic: Which AA do people draw from in retirement?
Replies: 17
Views: 1416

Re: Which AA do people draw from in retirement?

It's hard to answer your question without more context. Tax implications depend more on the type of the account than the type of investment in the account. Many people withdraw from taxable accounts until they have to withdraw from retirement accounts. Many people use withdrawals as an opportunity ...
by KlangFool
Fri May 18, 2018 6:56 pm
Forum: Investing - Theory, News & General
Topic: Which AA do people draw from in retirement?
Replies: 17
Views: 1416

Re: Which AA do people draw from in retirement?

Bonds, Stocks, or Target Date? Does it matter if in a bull or bear market? What are the tax implications of each? a_teacher, I believe that you are asking the wrong question. 1) The Retiree will keep a few years of cash or cash equivalent. This is where they use for current expenditure 2) Meanwhile...
by KlangFool
Fri May 18, 2018 6:41 pm
Forum: Investing - Theory, News & General
Topic: Which AA do people draw from in retirement?
Replies: 17
Views: 1416

Re: Which AA do people draw from in retirement?

Bonds, Stocks, or Target Date? Does it matter if in a bull or bear market? What are the tax implications of each? a_teacher, I believe that you are asking the wrong question. 1) The Retiree will keep a few years of cash or cash equivalent. This is where they use for current expenditure 2) Meanwhile...
by KlangFool
Fri May 18, 2018 6:23 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

Is there any particular reason you think the CFA/financial planning community isn't saying this? Most of them (just personal observation) advocate the Roth. Or how about good ole Ed Slott as another example; "go from forever tax to never tax!" I'm pretty sure Tony Robbins in his latest financial bo...
by KlangFool
Fri May 18, 2018 4:35 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

(A) is balanced and diversified across all possible future tax scenarios. (B) only works out in one possible outcome. Do you really want to bet all your retirement outcome on one tax basket? I don't think we disagree. For me, getting closer to position (A) has meant focusing more on Roth these days...
by KlangFool
Fri May 18, 2018 4:30 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

I disagreed. If someone can contribute to Roth 401K, that person could contribute to Trad. 401K and put the tax saving into Roth IRAs and the taxable account. A tilt towards Roth 401K is overloading the Roth space. Again, I don't entirely disagree with your reasoning. But this assumes someone is no...
by KlangFool
Fri May 18, 2018 3:44 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

(A) is balanced and diversified across all possible future tax scenarios. (B) only works out in one possible outcome. Do you really want to bet all your retirement outcome on one tax basket? I don't think we disagree. For me, getting closer to position (A) has meant focusing more on Roth these days...
by KlangFool
Fri May 18, 2018 2:05 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

A few days ago, Clark Howard recommended that anyone making under 315k married household AGI contribute to Roth 401k, not traditional. That, of course, matches up exactly to the top of the new 24% bracket. This is probably based on speculation on future tax rates, of course, but I found this intere...
by KlangFool
Fri May 18, 2018 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: Cash flow graduate school at the expense of reducing 401k contributions?
Replies: 9
Views: 534

Re: Cash flow graduate school at the expense of reducing 401k contributions?

I live in MA and my rent is by far my biggest expense. I could pay much less in rent but I pay for amenities and location. I'm fairly frugal to begin with and the rest of my expenses are managed pretty well. 1) 22% for 2018. 2) 5.1% - MA 3) I do know about the uses for both school or down payment o...
by KlangFool
Fri May 18, 2018 1:39 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

Quoted wrong person. This was aimed at Klang. You are assuming that he is talking about his pension and social security in future dollars. That is not correct, atleast on the social security aspect. Social security for someone making in the low 70's now will be 45-80k a year 30 years from now. 30 y...
by KlangFool
Fri May 18, 2018 12:38 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

I haven't had a chance to read the entire thread yet, but I would think the really wise folks are going Roth because it provides for the most room for the tax-sheltered money. Specifically, there is no doubt at all that 18,500 in a Roth is worth more than 18,500 in a traditional. Philosophically, a...
by KlangFool
Fri May 18, 2018 11:44 am
Forum: Personal Finance (Not Investing)
Topic: Cash flow graduate school at the expense of reducing 401k contributions?
Replies: 9
Views: 534

Re: Cash flow graduate school at the expense of reducing 401k contributions?

OP, 1) What is your marginal tax rate? 2) Do you pay state income tax? You will be paying a lot more taxes if you do not max up your Trad. 401K contribution to 18.5K 3) You could use your Roth IRA account as an emergency fund. https://www.bogleheads.org/wiki/Roth_IRA_as_an_emergency_fund KlangFool
by KlangFool
Fri May 18, 2018 10:37 am
Forum: Investing - Help with Personal Investments
Topic: Fund Roth IRA from taxable to avoid state tax?
Replies: 8
Views: 222

Re: Convert taxable to Roth IRA to avoid state tax?

OP,

1) Yes, contribute to Roth IRAs.

2) Please check out the following URL.

https://www.madfientist.com/how-to-acce ... nds-early/

3) Contribute to HSA too if you have one.

KlangFool
by KlangFool
Fri May 18, 2018 10:28 am
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

I haven't had a chance to read the entire thread yet, but I would think the really wise folks are going Roth because it provides for the most room for the tax-sheltered money. Specifically, there is no doubt at all that 18,500 in a Roth is worth more than 18,500 in a traditional. azanon, I disagree...
by KlangFool
Fri May 18, 2018 9:09 am
Forum: Personal Finance (Not Investing)
Topic: Having trouble figuring out expected expenses in retirement
Replies: 37
Views: 2488

Re: Having trouble figuring out expected expenses in retirement

In case it wasn't clear, my $18,000 in medical expenses with ACA included the fact that my wife and I are just over the ACA cliff. We couldn't get under the cliff because of dividends and capital gains. The capital gains are primarily due to tax inefficient investment choices I made years ago befor...
by KlangFool
Thu May 17, 2018 10:52 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

Another important factor to take into consideration when deciding on taxable vs. IRA is that IRA money when withdrawn would be taxed as ordinary income, but the gain in taxable would be taxed as long term capital gain or 15% for most people. The 15% tax rate is very attractive. This misconception i...
by KlangFool
Thu May 17, 2018 10:32 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

A consumption tax will impact the spending form both a Roth and a traditional account. The argument should be over which one will leave you with more spendable income. JoMoney, Globally, the trend is to lower the income tax rate while implementing the consumption tax. And, gradually lower the incom...
by KlangFool
Thu May 17, 2018 10:22 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

Do you consider sales tax imposed by your locality or state to be "double taxation"? Don't you also pay the local real estate tax and state income tax using post-federal-tax money? Do you believe you are being double taxed? God forbid if there were to be "living wealth tax", would you consider that...
by KlangFool
Thu May 17, 2018 10:19 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

A consumption tax will impact the spending form both a Roth and a traditional account. The argument should be over which one will leave you with more spendable income. JoMoney, Globally, the trend is to lower the income tax rate while implementing the consumption tax. And, gradually lower the incom...
by KlangFool
Thu May 17, 2018 10:12 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

Do you consider sales tax imposed by your locality or state to be "double taxation"? Don't you also pay the local real estate tax and state income tax using post-federal-tax money? Do you believe you are being double taxed? God forbid if there were to be "living wealth tax", would you consider that...
by KlangFool
Thu May 17, 2018 10:02 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

yeahman, A consumption tax is a double tax on every spending. It is not limited to Roth. It does not discriminate. KlangFool A consumption tax is a double tax only if it was taxed the first time as in a Roth but unlike a traditional. yeahman, So does every dollar that you used for spending. KlangFo...
by KlangFool
Thu May 17, 2018 8:36 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

Even Roths are subject to tax change risk. It isn't far-fetched to think they could be double taxed in the future. In fact, I rate it as more likely than a rise in the lower marginal income tax rates. The most politically popular tax increases are probably caps and double taxation. yeahman, I disag...
by KlangFool
Thu May 17, 2018 8:34 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

I pondered the traditional vs. Roth for a very long time (since I have both options in my 401(k)), and this is where I finally settled out on: It's illogical to leave the future tax rate "wildcard" in play, if you can completely take it out of play with a Roth, or Roth 401(k). What are we, some 20 ...
by KlangFool
Thu May 17, 2018 8:22 pm
Forum: Investing - Theory, News & General
Topic: Are you including annual increases in contributions in your projections?
Replies: 36
Views: 1547

Re: Are you including annual increases in contributions in your projections?

Compared to 10 and 20 years ago in the U.S., real wages have grown slightly according to the Federal Reserve. There certainly hasn't been a decline in real wages. But that's not the point. Let me provide an example. Let's say that it's 1998, and we're making the median U.S. household income, $38,88...
by KlangFool
Thu May 17, 2018 7:12 pm
Forum: Investing - Theory, News & General
Topic: Are you including annual increases in contributions in your projections?
Replies: 36
Views: 1547

Re: Are you including annual increases in contributions in your projections?

Rarely discussed on this forum is the impact of increasing contributions over time on one's investments. This might be partially due to that fact that many, probably most, of the investment calculators out there do not allow users to include increasing contributions over time. However, it seems pru...
by KlangFool
Thu May 17, 2018 7:07 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

Even Roths are subject to tax change risk. It isn't far-fetched to think they could be double taxed in the future. In fact, I rate it as more likely than a rise in the lower marginal income tax rates. The most politically popular tax increases are probably caps and double taxation. yeahman, I disag...
by KlangFool
Thu May 17, 2018 6:54 pm
Forum: Investing - Theory, News & General
Topic: Are you including annual increases in contributions in your projections?
Replies: 36
Views: 1547

Re: Are you including annual increases in contributions in your projections?

Rarely discussed on this forum is the impact of increasing contributions over time on one's investments. This might be partially due to that fact that many, probably most, of the investment calculators out there do not allow users to include increasing contributions over time. However, it seems pru...
by KlangFool
Thu May 17, 2018 6:43 pm
Forum: Personal Finance (Not Investing)
Topic: Having trouble figuring out expected expenses in retirement
Replies: 37
Views: 2488

Re: Having trouble figuring out expected expenses in retirement

FWIW, our total cost of medical insurance premiums for 1 year on ACA (2017), plus medical and dental out of pocket was $18,000 and that was with no life threatening illnesses but a few minor health problems. My estimate was $15,000. Being off by $3,000 was humbling, but I have enough room in my wit...
by KlangFool
Thu May 17, 2018 6:39 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 401
Views: 18148

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

My portfolio is 45/45/10 (tax-deferred/Taxable/Roth). So, why won't my tax rate at retirement would not be lowered? 1) I could spend my Roth IRA contribution and HSA tax-free. Aka, 0% taxable income 2) Meanwhile, I could Roth convert my tax-deferred account. 3) And, do tax gain harvesting or tax lo...