For those with $500k-$1m in investments...

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corn18
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Re: For those with $500k-$1m in investments...

Post by corn18 » Thu May 18, 2017 8:00 pm

51
30/70

Contribute about 50/50 now between 401k/Roth and taxable

401k = $60,000 total

18,000 before tax
6,000 401k catch up
18,000 401k match
18,000 401k after tax converted to tIRA then mega backdoor Roth
12,000 tIRA to backdoor Roth (wife + me over 50)

$72,000 total to tax advantaged

75,000 to taxable

Blender
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Re: For those with $500k-$1m in investments...

Post by Blender » Thu May 18, 2017 8:13 pm

Admiral wrote:In case you're curious why I posed this, I am 15% taxable 85% tax advantaged

Same. We're currently 15/85 as well. Now that houses are paid off and colleges saved for that 15% is likely to start rising a lot faster.

Admiral wrote:...since I have no specific future use for it in mind... or to use to fund an early retirement so I don't have to draw from Roth

^This. Our sole purpose of the taxable account is to live off of it during ER while taxing advantage of the 0% and 15% tax brackets to convert tIRAs to Roths and harvest capital gains.

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JonnyDVM
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Re: For those with $500k-$1m in investments...

Post by JonnyDVM » Thu May 18, 2017 8:31 pm

Interesting question. We're at about 12% taxable excluding the emergency fund. That number has been increasing steadily. We do utilize all of our tax advantaged space. I think most everyone here pretty much prioritizes maxing out tax advantaged space. Why wouldn't you want to save on taxes? Especially with a high earned income. Every dollar we put in retirement is like a free $0.33.
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slowbutsteady
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Re: For those with $500k-$1m in investments...

Post by slowbutsteady » Thu May 18, 2017 8:53 pm

Taxable - 0.87%
Investable assets - a bit out of specified range
Ages - 44/43

Can't max out all tax deferred. We max out all typical tax deferred and then some (NQDC), but NQDC allows up to 90% tax deferral. We have to eat.
Last edited by slowbutsteady on Thu May 18, 2017 8:59 pm, edited 1 time in total.
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Toons
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Re: For those with $500k-$1m in investments...

Post by Toons » Thu May 18, 2017 8:55 pm

30 Taxable
70 Deferred :happy
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Re: For those with $500k-$1m in investments...

Post by gwrvmd » Thu May 18, 2017 9:25 pm

Interesting thread....5 -6 years ago on this forum if you had over 50% in tax deferred you were an outlier, but as you can see that is not true today. Philosophy tended to be " Don't go into retirement owing all that money"
I am 90% tax deferred, retired 12 years. Was 80% tax deferred when retired. In a bull market all the taxes you haven't paid are compounding in your tax deferred accounts and they are going up even though you are taking RMD from them every year. Bull markets do wonderful things to tax deferred accounts.

If I had done a lot of Roth conversions I wouldn't be compounding all those unpaid taxes.
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brennok
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Re: For those with $500k-$1m in investments...

Post by brennok » Thu May 18, 2017 9:38 pm

60/40.

My mom though is somewhat the challenge. In retirement and 90/10.

Billionaire
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Re: For those with $500k-$1m in investments...

Post by Billionaire » Fri May 19, 2017 6:13 am

I'm outside the range, but have 9% in taxable. Made my first IRA contribution in 1981.

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Taz
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Re: For those with $500k-$1m in investments...

Post by Taz » Fri May 19, 2017 6:59 am

40% taxable
60% tax advantaged (28% Roth / 72% TSP+TIRAs)

Taxable from early contractual plan contributions + extra money in savings over the years.
TSP = rolled over my TIRAs after navy retirement + 8 years of wife TSP contributions

Asset allocation is about 55/45 with SCV tilt (currently 15% of stocks)
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Re: For those with $500k-$1m in investments...

Post by MnD » Fri May 19, 2017 7:20 am

A fair bit out of your range but 10% taxable 90% tax-sheltered.
We built the 100% equity taxable account 1986-1990 when our tax-sheltered space and options were much more limited and haven't added to it since. Have spent multiple 6-figures in gains from it and it's about the same size (inflation adjusted) as it was in 1990.
I call it the money tree and glad we did it.

Artisan
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Re: For those with $500k-$1m in investments...

Post by Artisan » Fri May 19, 2017 8:06 am

gwrvmd wrote:Interesting thread....5 -6 years ago on this forum if you had over 50% in tax deferred you were an outlier, but as you can see that is not true today. Philosophy tended to be " Don't go into retirement owing all that money"
I am 90% tax deferred, retired 12 years. Was 80% tax deferred when retired. In a bull market all the taxes you haven't paid are compounding in your tax deferred accounts and they are going up even though you are taking RMD from them every year. Bull markets do wonderful things to tax deferred accounts.

If I had done a lot of Roth conversions I wouldn't be compounding all those unpaid taxes.
(That should add a little controversy to this thread).........Gordon


I think for high income savers nearing retirement you will see more taxable money as they have maxed their tax deferred space and are putting their excess savings into taxable.

cleosdad
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Re: For those with $500k-$1m in investments...

Post by cleosdad » Fri May 19, 2017 8:19 am

David Jay wrote:
David Jay wrote:0.9% taxable, 99.1% tax advantaged overall, just retirement portfolio ($682K) 0%/100%


I am over 59 1/2 so I have access to my Roth funds without penalty, emergency cash is a HELOC.

I don't believe you have to be 59/12 to access contributions in a Roth.

jnet2000
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Re: For those with $500k-$1m in investments...

Post by jnet2000 » Fri May 19, 2017 8:45 am

We have 60% of our investments in a taxable account. Since we are self employed with employees, our SIMPLE IRA only gives us so much tax deferred space.
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crit
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Re: For those with $500k-$1m in investments...

Post by crit » Fri May 19, 2017 9:07 am

Age 45/47
40% taxable, 60% tax-deferred.

In our case, this split arose because we both only poked into higher tax brackets in the last ~5 years; I was a postdoc for too long before I got a faculty job, and spouse's earnings have fluctuated wildly as he works in software/startups.

We've maximized contributions to tax-deferred as much as possible in these last years, but can't go back to age 30 to contribute then ;-), so taxable is where the excess has gone.

TSWNY
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Re: For those with $500k-$1m in investments...

Post by TSWNY » Fri May 19, 2017 9:14 am

Age: 37/30
We are about 60% tax advantaged and 40% taxable.

Morgan22
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Re: For those with $500k-$1m in investments...

Post by Morgan22 » Fri May 19, 2017 9:18 am

We are in Mid 40's and are 100% tax deferred accounts.

When the kids finish college we'll probably start adding to taxable then. Or put some into home improvements?
In the meantime max out retirement accounts and cash flow college and related expenses for the kids.

Admiral
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Re: For those with $500k-$1m in investments...

Post by Admiral » Fri May 19, 2017 9:20 am

gwrvmd wrote: In a bull market all the taxes you haven't paid are compounding in your tax deferred accounts and they are going up even though you are taking RMD from them every year.


I guess I don't understand this sentence. What does a bull market have to do with taxes in a tax-deferred account? Are you saying that as a result of sharp growth in the value of tax deferred investments, your RMDs are larger and thus pushing you into a higher tax bracket? Since the alternative is investments with lower value throwing off less money, this seems like one of those good problems.

This is why Roth conversion is appropriate, but of course eventually in either case (convert and pay the income tax on the conversion, or don't convert and pay it on the RMD) you will hit the same tax bracket. Taxes are taxes, they still need to be paid.

DCChak
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Re: For those with $500k-$1m in investments...

Post by DCChak » Fri May 19, 2017 9:27 am

48
$750k NW, $700k investments
>2% Taxable
98% Tax-advantaged (TSP, IRA, 529)

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BolderBoy
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Re: For those with $500k-$1m in investments...

Post by BolderBoy » Fri May 19, 2017 9:36 am

Was 13%; with inheritance now 25%.
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zaboomafoozarg
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Re: For those with $500k-$1m in investments...

Post by zaboomafoozarg » Fri May 19, 2017 11:19 am

30% in taxable. I invest $10k in taxable every year, to help parents with upcoming retirement.

itstoomuch
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Re: For those with $500k-$1m in investments...

Post by itstoomuch » Fri May 19, 2017 11:38 am

itstoomuch wrote:it's complicated.
IRAs, Roth are mixed in brokerage accounts and annuities (deferred GLWB). A small amount is taxable but deferred or advantaged in some fashion but outside of IRA.
Not counting investment condo held as rental for retirement income.

Maybe, 95% IRA/ROTH. 5% taxable. Most of our gains is in the Tax Qualified spaces because I spend more time and effort in growing them, TQ was much larger at time of retirements, we had very little extra money to fund Taxable spaces :annoyed . Most importantly, I don't like Sch D hassles :oops: :annoyed :mrgreen:
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Winkdinkerson
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Re: For those with $500k-$1m in investments...

Post by Winkdinkerson » Fri May 19, 2017 11:59 am

56 yrs old. Wife and I have 18% taxable, 82% tax deferred. 5 years ago we only had about 3% in taxable, but major promotion resulted in maxing out of tax advantaged space.

Radjob4me
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Re: For those with $500k-$1m in investments...

Post by Radjob4me » Fri May 19, 2017 12:07 pm

10% taxable (checking/taxable investments)
90% tax-advantaged (IRA/401k and 529s)

We are trying to grow our taxable for both unexpected college costs for kids beyond 529s and for use when I plan to semi-retire in the 55ish range - about 12 years from now.

ValueInvestor99
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Re: For those with $500k-$1m in investments...

Post by ValueInvestor99 » Sat May 20, 2017 12:49 pm

My wife and I are 60% taxable and 40% Roth. We are retired and have over $1m in investments.

MikeRight
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Re: For those with $500k-$1m in investments...

Post by MikeRight » Sat May 20, 2017 1:04 pm

90% taxable / 10% non-taxable (I'm from UK, we have ISA - it's British IRA basically)
Too young to have more in non-taxable accounts.

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Re: For those with $500k-$1m in investments...

Post by LadyGeek » Sat May 20, 2017 1:25 pm

Welcome! The wiki has some background info: Individual Savings Accounts (UK)
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MikeRight
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Re: For those with $500k-$1m in investments...

Post by MikeRight » Sat May 20, 2017 1:36 pm

LadyGeek wrote:Welcome! The wiki has some background info: Individual Savings Accounts (UK)

Thank you indeed! :sharebeer

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Re: For those with $500k-$1m in investments...

Post by goodenyou » Sat May 20, 2017 2:44 pm

I started a thread 5 years ago on this and added age as a twist.
viewtopic.php?f=1&t=93990&p=1352962#p1352962

I was at taxable/tax-advantaged 75/25 (3:1) at that time (2012). I am now 80/20 (4:1). Most of my equities are in my taxable space and most of bonds and fixed-income in tax-advantaged. Part of the increasing divergence is the rate of return differential between theses asset classes, and I also save more in taxable after maxing-out tax advantaged space.
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Re: For those with $500k-$1m in investments...

Post by sherwool » Sat May 20, 2017 3:03 pm

Early 60's here still working. Little over 70% in retirement assets.

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3wood
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Re: For those with $500k-$1m in investments...

Post by 3wood » Sat May 20, 2017 7:20 pm

80% tax deferred
10% tax advantaged
10% taxable

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Re: For those with $500k-$1m in investments...

Post by 22twain » Sat May 20, 2017 7:30 pm

Just retired at 63. About 25% in taxable, most of it from an inheritance. At 54 I had < 5% in taxable.

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Re: For those with $500k-$1m in investments...

Post by am » Sun May 21, 2017 9:40 pm

Admiral wrote:I'm curious to know what percentage of your invest-able assets (that is, liquid assets, so not including home equity) you have in a taxable account versus retirement accounts. I'm including Roth in retirement accounts even though in many cases these monies can be accessed penalty free. How the funds are invested does not concern me.

For example, someone that has a $700k portfolio might have:
10% in a taxable account
90% in tax advantaged accounts

If you want to add more detail, you could also note whether you add to your taxable account, and how much/how often.

Thank you.


Just want to add how incredibly successful we bogleheads are at savings and investing compared to the majority of the population. It's easy to forget that when so many people here have portfolios in the hundreds of thousands or even millions. I was feeling a little down about how much further I have to reach my retirement portfolio goal so I did some Internet research on average retirement savings this morning. I was shocked at how poorly most are doing and that my portfolio is probably top 5% or even closer to 1% (depending on source) for my age by I feel like I am so far from my goal and with the big bull market and high valuations kind of depressing. But looking at the population as a whole made me feel much better about where I am. Hanging around here doesn't always make me feel so.

By the way 25% taxable rest pension and tax deferred.

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Re: For those with $500k-$1m in investments...

Post by zaboomafoozarg » Sun May 21, 2017 10:16 pm

am wrote:But looking at the population as a whole made me feel much better about where I am. Hanging around here doesn't always make me feel so.


Agreed, I felt way more optimistic about my situation and my future before joining this forum.

Of course it was out of ignorance, but sometimes I yearn for that happy ignorance again.

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Re: For those with $500k-$1m in investments...

Post by High Income Parent » Sun May 21, 2017 10:26 pm

30/70. Taxable is building faster than tax advantages.
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Re: For those with $500k-$1m in investments...

Post by MikeG62 » Mon May 22, 2017 7:43 am

We are ~80% taxable and ~20% tax deferred/free (vast majority of the latter is tax deferred).

I am 54 and DW is 52 years old. Retired last year.

Contributed maximum amount allowed by law every year to 401k for at least the last two decades of work (and got sizable company match on those contributions). However, income level allowed for significant savings in taxable accounts (way beyond what we could put in tax deferred) as we lived well below our means (but still quite well and very, very far from frugally).

We plan to do annual Roth conversions every year between now and the time we turn 70 and begin collecting SS and taking RMD's. Whether this allows us to whittle down the tax deferred account or just hold it where it is (conversions offsetting growth) is hard to say. Goal is to try and avoid being pushed into higher tax brackets once we are in our 70's and beyond.

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Re: For those with $500k-$1m in investments...

Post by Nowizard » Mon May 22, 2017 8:06 am

Age 75. We have always put as much in retirement savings as possible, Ratio is 97% in retirement, 3% in taxable, though the latter inches up each year due to MRD's of mine and starting one for my wife next year. Slott's The Retirement Savings Time Bomb, that may not be the exact title, has been of some benefit dealing with related issues.

Tim

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Re: For those with $500k-$1m in investments...

Post by Dogsbestfriend » Mon May 22, 2017 12:16 pm

Interesting to see how widely the answers to this one vary. For us, right in the specified range, age 40:

40% taxable
40% Roth
20% tax-deferred

Reasons taxable is higher than it might otherwise be:
1. Started my career clueless about all of it, and followed the recommendations of a financial salesman advisor, who convinced me that the TSP (our version of a 401k) was a raw deal to be avoided, and best to keep my money in his [high load, high ER] funds where I could access it if needed. So for many years I did not use the TSP at all, but instead put the money in taxable accounts. Glad I have it, but still lament those years I squandered TSP access and the tax advantaged space.
2. One-income family, so only one TSP/401k account (but two IRAs). If we could do two TSP/401k, we certainly would, but my wife is doing the hard work as a stay-at-home mom for the time being.
3. Taxable account is all equities, whereas the bond allocation is all in tax-advantaged.

Current contributions are about 2/3 to TSP & IRAs (max) and 1/3 into taxable (Vanguard).

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Re: For those with $500k-$1m in investments...

Post by Easy Rhino » Mon May 22, 2017 1:03 pm

Around 20 or 30% taxable. About half of that was actually gifts from my Dad that he wanted me to invest and specifically not put in an IRA, etc.

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Re: For those with $500k-$1m in investments...

Post by Golfalot » Mon May 22, 2017 7:28 pm

My wife and I are in our mid-40's and are both fortunate to have nice paying careers. We have roughly $3.7MM in invested assets with approx 60% taxable / 40% tax deferred.

We max out our Company 401(k) contributions each year, as well as my IRA and her backdoor Roth. By earning way more than we spend each year (although we don't live too frugally), we are able to save a nice chunk of change towards taxable every year. So I would imagine our taxable as percentage of total should continue to grow until retirement.

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