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My company's mega backdoor roth does not offer an in service distribution option, although we can set up automatic conversions. I'm trying to understand what this means, and whether I should participate. Our HHI is roughly $1M - we already max out all of our tax advantaged spaces, HSA, backdoor roth, and approx $120,000 per year in a taxable. We are 36 and 37 and plan to work until we are both 50 at the latest. We have $1M in investments. We are already in the highest bracket and we save roughly $300k/year. Since we will be retired by 50, we will use our taxable account to get us to 59.5. My work plan offers a mega backdoor roth. We can do automatic in plan conversions (which I have set up - have not started contributing yet until I max out...

35 (last year) then again at 36 (this year)

I do it from a combination of things -

I add some padding to my emergency fund when I receive extra income (surprise bonus or spend less that month etc). That's usually up to idk a reasonable amount related to last year's taxes/my projections for the taxable account

I also adjust my employer withholdings a bit

And I don't reinvest dividends so I can also use the cash in that settlement account

After taxes filed, I can use the surplus in accordance with our investment plan and rinse and repeat each year.

ilisira wrote: ↑Sat Jan 21, 2023 2:10 pm
If there is interest, I can try to replicate a similar spreadsheet in google sheets.

Yes! That would be amazing and very helpful

For contributions to mega backdoor roths (after-tax 401ks) - we have to enter in a percentage of our paycheck into Fidelity for contributions. I've searched high and low to see if I can find the answer - is that percentage supposed to be a percentage of my take home pay (post-taxes) or percentage of gross. I am unreasonably confused by the issue. Thanks!

We will use mega backdoor roth for first time since I have a new job that offers it. Will continue maxing 401k, 403b, 457, backdoor roth, HSA. Will continue investing $10k/mo into our taxable brokerage. Will also continue adding an extra $3,700 per month to our principle on our mortgage. Any bonuses or extra money we will put toward our mortgage. Really everything is solidly on auto-pilot. I will also cash out a small $40k pension from my prior job and put that money into our taxable brokerage in 2023. Was waiting to do that until 2023 for tax reasons (we are going to have a larger tax bill this year because of my sign on bonus). But YAY. Hoping this year continues smoothly. First year that we really have no solid things to do other than st...

End of the year addition to this thread: We are now at a total of $950k in investments (up only $50k from last year despite putting almost $200k into the market - but I'm glad to finally have the opportunity to buy some of the market on sale) We have been rapidly paying down our mortgage. Balance is now ~$400k and we should be able to pay it off in 4 years max. My goal was to get it below $400k - missed that by a few thousand, but I'm still very happy with the progress. I hate debt, so happy to be continually chipping away. I also nearly doubled my income this year with a new job - hoping to continue developing skills and growing in the new job in order to continue to propel our goals. New job comes with a mega backdoor roth, so I'm also ve...

We keep $19k in there as buffer (2x monthly expenses). Just like having a cushion sep from our EF.

Super helpful thx!

I moved to an employer which will allow mega backdoor roths (never had access to MBDR before now). I’ve always maxed out 401k, 403b, 457b, and done backdoor roths. We are high income DINKs (just shy of $1M per year combined annual income), super savers (over $250k/year) who plan to retire by 50 at the latest (we’re both mid thirties). Net worth is just shy of $1M of investments (not including home equity). Plan to retire with $7M by age 50. I’ll start my MBDR Jan 1 and max out up to the $61k limit (or whatever it is). It allows automatic in-plan conversions through fidelity which I plan to enable. Two questions. 1) can I still do a $6.5k backdoor Roth in 2023 for both me and my husband? 2) we have option with MBDR to do roth 401k or Roth IR...

We reached $1M in investments! Husband is 37 and I’m 36. He’s a physician and 5 years out of training. We have a ways to go until FI (our target is $7M), but it’s amazing to finally have this first big investing milestone behind us! I also just accepted a new job where I’m almost doubling my income, so that should help us reach some goals quicker YAY!

Sorry seems like using the term mid-level is confusing. It's not an entry level in-house position and not a senior position. I'm 10 years out-- position is suited for someone 8-15 years out of law school.

9-5 Suited wrote: ↑Thu Jun 23, 2022 3:14 pm Just curious if you could elaborate on how you came to the conclusion this offer was low? Not suggesting it isn't, just wandering what information convinced you of that.

Just the way the recruiter framed this as their minimums and whether it was hundreds of thousands of dollars off my expectations

Are there any in-house FAANG attorneys who can share your comp breakdown (base, bonus, RSUs) and PTO? I am pre-offer with a tech company that is competing in the same ballpark as FAANG lawyers for talent. I'm trying to have a better understanding of what I should reasonably ask for. Do you know what a reasonable expectation for in-house lawyer comp should be at a FAANG-like company for a mid-level commercial contracts role? Or are there websites I can use to evaluate? Every site I've consulted is for software engineer/IT roles not corporate roles (and not lawyer roles). The starting numbers they provided me were low -- minimum of $220k base, annual bonus of at least 15%, and RSU of at least $30k. I know this is WELL below what it should be ...

Wellington, New Zealand

So I hate to decide things based on "what other people are doing" but in this case, if your neighborhood is high end, people are going to expect you have high end appliances if you ever sell. It's a negative if you're in a shi shi neighborhood and have kitchenaid appliances.

Are they worth the price tag? Absolutely not. It's all the same basic motor and functionality. But the name brand is going to cost you more because they can be super customized and all of that good stuff. But it truly comes down to the character of your neighborhood and what your neighbors have in their house. If it's a low-end/average neighborhood, I wouldn't spend the money on luxury appliances.

Construction/field operations for a utility company. Or lineman for an electrical company

Thanks, all. This is helpful.

All,

I am an in-house attorney working for a publicly traded company. I still have lots of colleagues and close friends who work in other similar jobs in the same city. We'll often compare salaries/benefits regularly and touch base when interviewing elsewhere so that we all know what's market. Well, my company has been minorly lagging the past couple of years, but now we are WELL outside of the norm. SUPER underpaid. I don't want to leave my job. But I do want to request that a market-based salary adjustment be made for existing employees.

Has anyone done this? Any idea how to ask for this? I know there's data out there -- I want this for the whole department not just for me.

Squirrels?

Net worth increased by $305k today! Husband's student loans were forgiven through PSLF

Thanks, all. This is helpful!

Assuming that you have capital gains on those target-date funds in your taxable brokerage account, I'd recommend you consider the following: 1. Halt any automatic investment in those funds and turn off dividend reinvestment. 2. Do not sell any shares that you have held for less than one (1) years. Short-term capital gains are taxed as ordinary income, rather than at the favorable capital gains rates. Shares held at least one (1) year are taxed at the long-term capital gains rates. 3. Ascertain whether you have any zero percent (0%) long-term capital gains tax space based upon your tax filing status and taxable income. If so, sell whatever portion you can at zero percent. (0%) (Note: These rates pertain to federal taxation, you may incur li...

All, I finally understand now why all of you say not to do a TDF in a brokerage account because of dividends. We contribute $10k monthly to our brokerage account. We have been doing this for the past 5 months, and thankfully I'm course correcting now rather than 30 years from now. I had to actually SEE the dividends get deposited in order to have my ah-ha moment. The balance in that account is roughly $50k. I've now course corrected into a three fund strategy for all future investments in that account. Do I just leave the TDF balance in there for now since ultimately it will be a really small part of our portfolio balance long term. Or should I just bite the bullet and pay the taxes on it? I'm leaning toward just moving the TDF funds into m...

End of year addition to this thread:

Investments are up $300k from last year -- now $900k! Should cross $1M in investments in 2022...
We also saved up an $86k emergency fund over the course of 2021

Firemenot wrote: ↑Fri Dec 03, 2021 10:54 am
I think a lot of the general public’s misperception about the typical lawyer’s compensation comes from TV and movies.

And their spending habits

BigLaw Survivor wrote: ↑Tue Nov 30, 2021 9:22 am Biglaw, obviously. But look at my username to get an idea of how much fun that was.

I went in house after 5 years, and I never looked back. I realized how biglaw had completely warped my view on how most everyone works. It's so demanding on the attorneys' (and their families') time -- I can't imagine how you stuck it out as long as you did

I married a surgeon

DoubleComma wrote: ↑Wed Oct 13, 2021 2:08 pm There is no right answer to this.

I use cash for these types of purchases. The leverage you get by keeping cash invested and taking on debt isn’t attractive to me. I’m not concerned about having enough money at retirement or another point in time to want additional debt service.

Others prefer debt and keeping their cash invested. They have their own reasons for that.

You get to pick what you prefer.

This, however, IS the right answer

I love the posts about motivation. I think it's a necessary part of the journey. For us, we love travel. So I make sure that we have champagne and trip on the books once we celebrate milestones. And I'm talking LAVISH trips. Not like a weekend hike in the woods.

To each their own, but I can't relate to those that just let each milestone pass by. I need to take a breather and spend a little bit in order to reward the sacrifices.

I often wrestle with this dynamic myself (although we are dual income no kids). My husband makes $700k+ a year. I made $180k+ a year (but I'm taxed at the highest rate since we file jointly). So I bring in ~$5k/mo versus his $35k/mo take home. And my job is incredibly stressful and demanding. And I only have 18 days off a year. My vacation time is so limited that it limits the time my husband can take off of work. I often wonder if it's even worth it for me to work when I'm bringing in limited value. If your spouse does not derive satisfaction from work, then I think it's a bad idea to do it for the financial reasons only. The reason I do it is that I take pride in having a job, I like sharing in our shared financial goals, I like contribut...

pezblanco wrote: ↑Thu Oct 07, 2021 7:11 pm

stoptothink wrote: ↑Thu Oct 07, 2021 4:15 pm

KirklandCoug wrote: ↑Thu Oct 07, 2021 3:54 pm Red Iguana is a must in SLC. Maybe the best Mex I've ever tasted.

Been mentioned twice in this thread. IMO, it's OK, but (as a Mexican myself) pretty much every one of my relatives makes better food. Maybe it's just me, as someone who rarely eats out, but I wouldn't go out of my way for it.

You brought me out of hiding! ha ha ha ... yes, It is probably the best Mexican restaurant in SLC but seriously, that is like saying a certain eating establishment is the best French restaurant in Green Bay, Wisconsin. I.e. it's not particularly good Mexican food ....

Lolololol agree. Their food is solidly mediocre. Brunch at the copper grill, however, is always fantastic. Get the Turkish eggs!

All, We are finally to the point where we are in a position to regularly invest for retirement in a brokerage account. I opened it in August. The goal of this account is for a supplement to our tax advantaged retirement accounts. We do not plan on taking money out of this account until retirement (15 years from now). We are at the highest tax bracket now, and we expect to be that way until we retire. Our goal is $7M in assets before we retire. I am trying to set up our taxable account in the simplest way I can to make life at retirement easier -- trying to set things up the right way at the outset rather than trying to undo things later. We use Fidelity for this brokerage account. We invest $10k/mo in this account (current balance is $18k)....

If you’re over the estate tax limit, I think it’s worth talking to a tax advisor, estate planning attorney, etc.

Mine is usually $15k-$20k. We put it all toward our mortgage.

Quick question. My LenderFi refinance closed on 8/26. Funded today (but apparently funds will not transfer until 9/2). Thus, my regular payment for my current lender is due tomorrow and will be drafted tomorrow as usual before the payoff takes place. Do I contact the title company about this? What are my steps? Will my current lender issue a refund check to me? Anyone know?

PM me if you want to chat. I can share our regular budget/more detail if needed. Our HHI is similar to yours (except we are DINKs). Husband is in a high paying specialty 5 years out of training (~$700k/year). I am a corporate lawyer who brings in about what a pediatrician does (~$180k/year). We make sure that we're saving at least 30% of our gross income per year. This ends up at about $250k/year. Plan is to be work optional by 50-55ish. Our fixed expenses run about $9,500 per month. Our discretionary spending is about ~$10,000/month. And taxes make up the rest of it. Your savings/spending seems in line with us (and I'd consider us to be relatively financially conservative). Echoing what others say about following the white coat investor. W...

Jags4186 wrote: ↑Fri Aug 20, 2021 7:45 am Always negotiate.

this.

We bought our house in 2018. Since that time, I have refinanced yearly. Currently 15 year mortgage, 2.625% rate, $545,000 left on mortgage on an $830,000 house. We are on track to be mortgage free in 4.5 years. Just saw quote on bankrate for better mortgage of 1.75% rate for 15 year mortgage with .12 points (like $636). Not sure but based on prior refis, would expect closing costs of $3k or so dollars. I assume it's a no brainer to proceed? It would save me something like $500 on my mortgage payment for the next 56 months (like $30k). Is this worth the hassle even though we're going to pay off our house in 4.5 years? If you are aggressively pre paying your loan, you would especially want to get as many lender credits as possible instead of...

Horseshoe Canyon Ranch near Jasper, Arkansas is phenomenal. An added bonus if you're a rock climber (or ever thought of getting into the sport -- they offer lessons) is that it has world class outdoor climbing (450 bolted routes!).

I am nowhere near your level of achievement in terms of dollars saved so I offer this perspective from a very humble place. I do consider myself somewhat of an expert on creating happiness through what bogleheads call "charitable contributions." I spend 15 - 20% of my income this way and have for many many years. I am constantly surprised to find out how much this way of being in the world adds to my life, and the extent to which it helps me address my own anxieties, griefs, and traumatic history. So in terms of the advice to give charitably - I wanted to add my recommendation that if you take that path, that you would donate in ways that are emotionally engaging and meaningful to you, and that require your participation in some ...

I am also a lawyer -- my brain works similarly -- usually pretty anxious/highly conservative given that it's what makes us good lawyers :) You've got to find ways to spend that works for you. This could be things like hiring out services around the house, hiring a cleaner, hiring a cook/meal planner, hiring a home organizer, paying for grocery delivery, etc. Think of things like travel, or also taking college classes, learning a new hobby., paying for a personal trainer. All of these things take money! Be creative on how you're "spending" if you don't like "things". If spending gives you anxiety -- think of it in terms of giving as well. Be uber generous. When you spend on something lavish, donate an equivalent amount to...

We bought our house in 2018. Since that time, I have refinanced yearly. Currently 15 year mortgage, 2.625% rate, $545,000 left on mortgage on an $830,000 house. We are on track to be mortgage free in 4.5 years. Just saw quote on bankrate for better mortgage of 1.75% rate for 15 year mortgage with .12 points (like $636). Not sure but based on prior refis, would expect closing costs of $3k or so dollars. I assume it's a no brainer to proceed? It would save me something like $500 on my mortgage payment for the next 56 months (like $30k). Is this worth the hassle even though we're going to pay off our house in 4.5 years? Just curious how are going to be mortgage free in 4.5 years? You plan to pay 100k a year or more on the principal? Correct. ...

TheOscarGuy wrote: ↑Mon Aug 16, 2021 9:42 am I am getting 15 year @ 2% with no closing costs, these rates are insane! I thought 2.6% was good last year, its crazy to think I am thinking of again refinancing.

Same!

We bought our house in 2018. Since that time, I have refinanced yearly. Currently 15 year mortgage, 2.625% rate, $545,000 left on mortgage on an $830,000 house. We are on track to be mortgage free in 4.5 years.

Just saw quote on bankrate for better mortgage of 1.75% rate for 15 year mortgage with .12 points (like $636). Not sure but based on prior refis, would expect closing costs of $3k or so dollars. I assume it's a no brainer to proceed? It would save me something like $500 on my mortgage payment for the next 56 months (like $30k).

Is this worth the hassle even though we're going to pay off our house in 4.5 years?

etfan wrote: ↑Tue Aug 10, 2021 7:35 pm

Are there other pros to this besides simplicity, given the tax consequence?
[/quote]

I mean there are a plethora out there -- reduces the temptation to unnecessarily mess with holdings when market is down, makes it easier for a spouse or partner to continue the plan by themselves if you aren't able to, it's diversified, and all in all it's still low cost, tax efficient (though arguably other strategies could be more tax efficient), and saves me substantial time and and energy to focus on other pursuits. I focus more on my savings rate -- if that's high enough, I can reach my goals with plenty of money without needing "more".

Don’t let the taxes on dividends be your entire deciding factor. It’s strange to me on this forum how people view paying taxes (even paying those at more favorable rates like reinvested dividends) as a bad thing blowing up the whole plan. Congrats, you made extra money during the year that’s taxed at a more favorable rate. It strange how some people are completely oblivious to the tax consequences of poor asset location and investment options when better alternatives exist. No one is oblivious to tax consequences. I’m choosing to value simplicity over the marginal difference. Please read my posts above. I value simplicity over the slight difference in taxes. I can still reach my goals and not have to fiddle. And if the option is VTSAX over...

I actually agree with all the above and would like to do the same, but I'm scared of the taxes I would have to account for. Otherwise, a single target date fund in all accounts would be my preference. You should work on putting together your investment policy statement. Identify what your goals are, etc. Analyze your risk tolerance, etc. It will make decisions like these a lot less stressful. Every goal, choice, etc. is going to come with some risk. You have to put together a reasonable plan that aligns with all of your goals. Once you do that, a lot of these decisions are easier. Side note, you should listen to the White Coat Investor podcast interview with Morgan Housel (episode 172) about behavioral finance. He does a really good job of...

Mind sharing the reasons why? (I personally don't have an opinion). Simplicity. Saving time. Reducing the time I spend researching, checking accounts, rebalancing, etc. A target date fund is still in line with my own principles (low cost, buy the market instead of individual stocks, etc). It also simplifies things for my husband should I pass before he does -- less fiddling/tweaking that he has to do since I am the one who manages our money. I can just tell him easily if something happens to me, keep investing X dollars a month into this target date fund (although it's set up to automatically do that so he really shouldn't have to do much :D ). Everyone is different. I've learned that this board often forgets that personal finance is perso...

Others can chime in, but it’s not unreasonable per se to invest your taxable into a target date fund. In fact, my own investor policy statement says that’s where those taxable brokerage funds go. It’s a one stop shop that’s low cost that does the rebalancing for me over time. I pay a hair more for that convenience but overall it’s still an extremely low cost option.

Don’t let the taxes on dividends be your entire deciding factor. It’s strange to me on this forum how people view paying taxes (even paying those at more favorable rates like reinvested dividends) as a bad thing blowing up the whole plan. Congrats, you made extra money during the year that’s taxed at a more favorable rate.