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

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Sic Vis Pacem
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Re: For those with $500k-$1m in investments...

Post by Sic Vis Pacem »

Mid 30's. We are about 50/50, but that's largely the result of an inheritance. While we are contributing to taxable, we are contributing much more to our tax advantaged accounts, and (fingers crossed) will have access to much more 401k space starting next year, so we expect that percentage to drift in favor of tax advantaged over the next few years.
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eye.surgeon
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Re: For those with $500k-$1m in investments...

Post by eye.surgeon »

70% in a 401k and 30% in taxable/Roth.
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stoptothink
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Re: For those with $500k-$1m in investments...

Post by stoptothink »

39 and 34, currently $750k-$800k in investments. We have a grand total of ~$6k in taxable as we agreed to hold off on taxable until we paid off our mortgage, which happened in May. That ratio should equal out fairly quickly over the next few years.
Actin
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Re: For those with $500k-$1m in investments...

Post by Actin »

90% taxable 10% deferred.

Before starting my own business, I had a high paying job, but it had absolutely no retirement benefits. Really wish I had done more with my Roth when I was younger. My taxable is significantly large enough that it's a glorified savings account and emergency fund.
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22twain
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Re: For those with $500k-$1m in investments...

Post by 22twain »

22twain wrote: 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.
Three years and a few months later, I'm now down to about 18% in taxable. I've been spending it down while I delay collecting Social Security. Three and a half years to go.
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TimeTheMarket
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Re: For those with $500k-$1m in investments...

Post by TimeTheMarket »

Over 90% is tax advantaged. I only started a taxable account a few years ago, and it gets less contributions, as I feed retirement accounts first. If I'm lucky eventually I'll get to the point where I can put more into taxable than tax advantaged, but that feels quite a way off.
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5th_Dimension
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Re: For those with $500k-$1m in investments...

Post by 5th_Dimension »

Age 61. 56% taxable, 44% deferred. Larger taxable due to inheritance.
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Tamalak
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Re: For those with $500k-$1m in investments...

Post by Tamalak »

Despite maxing out my roth, HSA, and 401k every year, I have about 2/3s in taxable. I plan to retire early (early 40s) so I wouldn't want it to all be in tax-advantaged anyway
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anon_investor
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Re: For those with $500k-$1m in investments...

Post by anon_investor »

Roughly 25% taxable / 75% retirement & HSA, excluding 529 plans. But the numbers would be a lot different if I did not have access to the mega backdoor roth.
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Thrifty Femme
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Re: For those with $500k-$1m in investments...

Post by Thrifty Femme »

Tax Deferred 49%
Tax Free 41%
Taxed 10%
pasadena
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Re: For those with $500k-$1m in investments...

Post by pasadena »

46 yo. Taxable is about 26% (includes EF), the rest is in tax advantaged (401(k), Roth IRA and HSA).

Adding to taxable as I can. Not much for the past 2 years as I now have access to mega backdoor Roth and it doesn't leave much for taxable. Most of my taxable growth this year has come from small RSU grants vesting and huge gains in my play money brokerage.
In 2018 it lept forward due to a fairly big retention bonus from my previous employer.
parisinthespring
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Re: For those with $500k-$1m in investments...

Post by parisinthespring »

Long time lurker, first post! Approx. 25% taxable; 75% tax deferred. 2 months till I reach 65. With luck, hope to hit the 2 comma club in investments around the same time. Am still working and contribute max to company 401k with 6% co. match.
tiburblium
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Re: For those with $500k-$1m in investments...

Post by tiburblium »

60% Taxable
40% 401k/IRA/Roth/HSA

I wish I would have had more tax advantaged savings opportunities. Unfortunately, I worked at a company for a long time that limited my 401k contribution to 6% per year due to the HCE rule because of how their plan was structured. I also took much bigger risks in my taxable account, though I stopped doing that about 2 years ago
EngineerGuy
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Re: For those with $500k-$1m in investments...

Post by EngineerGuy »

63% Taxable
30% Tax Deferred
6.5% Tax Free
0.5% Triple Tax Advantaged

Ended up with lots in taxable due to living overseas.
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AerialWombat
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Re: For those with $500k-$1m in investments...

Post by AerialWombat »

2% in Roth IRA
34% in Solo 401k
64% in taxable
Annabel Lee
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Re: For those with $500k-$1m in investments...

Post by Annabel Lee »

inmymind wrote: Thu May 18, 2017 11:47 am 40 / 60

Mid 30s. Max out tax adv. space and add to taxable when I can.
+1. 40% taxable, 60% tax-advantaged. Same age range, same strategy.

3 years ago: 0% taxable, 100% tax-advantaged. Then I opened a Vanguard account...
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changingtimes
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Re: For those with $500k-$1m in investments...

Post by changingtimes »

81% tax-deferred
10% taxable
9% Roth

Widowed, 54. Have actually stopped contributing to my 401k because tax-deferred is not really what I need right now. Between pensions and SS, I'm not sure I'm going to have a lot of opportunity to do many Roth conversions, and filing single will keep me in a pretty high tax bracket. Don't need to keep increasing the pot of eventual RMDs.
retire2022
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Re: For those with $500k-$1m in investments...

Post by retire2022 »

OP

60 years old

2% cash in Taxable, 30% in ROTH IRA, 2% ROTH 457, 67% taxed deferred 457

This was because income was low in mid 1980's and could not afford to fund taxable accounts.

Btw my portfolio is 2 million am I disqualified? :oops:
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pokebowl
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Re: For those with $500k-$1m in investments...

Post by pokebowl »

Age: Early 30s

Taxable: 85%
Tax Sheltered (Roth, 401k, HSA): 15%

Not by design, but its where the chips fell. Hoping before I FIRE to pack a little bit more in the tax sheltered category to give me some wiggle room to adjust my portfolio at will without worrying about the tax man. :beer
Erwin007
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Re: For those with $500k-$1m in investments...

Post by Erwin007 »

Taxable is 21%, tax free (Roth) is 39%, and tax deferred is 40%. Have been contributing to Roth x 2 for 12 years, tax deferred for real for 6 years, and taxable for 2. Tax deferred and taxable will far outstrip Roth over the next couple of decades, however.
jeffh19
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Re: For those with $500k-$1m in investments...

Post by jeffh19 »

35. 60% in taxable. Max my tax advantages accounts every year, but can only cram so much in them. I auto contribute to my taxable every paycheck.
LSGP_545
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Re: For those with $500k-$1m in investments...

Post by LSGP_545 »

44 for me - 42 for the wife.

99.9 % in retirement accounts....we've spend most, if not all of our taxable at this point to buy some land and pay off our house. We both have very stable income (fed employee already retired from military reserve side for me; wife is a Physician Assistant).

We're in the process of building a new home, so within the next year we'll likely take on a mortgage around 2.5-2.75% for a 15 year (assuming interest rates stay low) and roll the proceeds from our current home into taxable accounts getting us closer to 80% in retirement and 20% in taxable accounts.
Jags4186
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Re: For those with $500k-$1m in investments...

Post by Jags4186 »

We have 18% of our liquid funds (including cash) in taxable accounts. Ages 34/35.
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aj76er
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Re: For those with $500k-$1m in investments...

Post by aj76er »

Ages 44/48. AA is split approximately 40% tax sheltered and 60% taxable.
We currently rent so instead of home equity, we have a large taxable account (mostly in VTI and VXUS).

The tax sheltered accounts include 401k, HSA, Roth.
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jsapiandante
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Re: For those with $500k-$1m in investments...

Post by jsapiandante »

Ages 38/36. AA is 80/20. Currently 50/50 taxable and tax deferred. Plan is to grow taxable large enough so my wife can quit/go part time while we let our 401k/Roth grow until we are retirement age.
hoffse
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Re: For those with $500k-$1m in investments...

Post by hoffse »

33/33

All of our taxable is currently earmarked for college. We have a toddler and may have another kid, so there is no telling where that is going to end up. We contribute to a 529 up to the state tax deduction limit and put everything else in taxable for flexibility. I won’t count any of it as ours though until we know how the college thing shakes out, unless the taxable account grows so huge that there is no reasonable way college costs could absorb all of it. We aren’t there yet though.

So for now, I consider us to be 100% tax advantaged. Of that, about $410k is in Roth or HSA accounts and $150k is in tax-deferred. We have been making Roth 401k contributions for most of our careers and intend to do it for 2 more years before switching to tax-deferred. Our current tax-deferred money is primarily from employer contributions. We did it this way because we anticipate a large and fairly permanent increase to our tax rate in 2 years, and this gives the Roth money the longest runway for growth.
Silk McCue
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Re: For those with $500k-$1m in investments...

Post by Silk McCue »

parisinthespring wrote: Tue Sep 01, 2020 8:49 pm Long time lurker, first post! Approx. 25% taxable; 75% tax deferred. 2 months till I reach 65. With luck, hope to hit the 2 comma club in investments around the same time. Am still working and contribute max to company 401k with 6% co. match.
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colodane
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Re: For those with $500k-$1m in investments...

Post by colodane »

I'm somewhat over your $1M limit, but presently 63% taxable and 37% IRA.

Age 77. Retired for several years so no ability to add to IRA. Also taking RMDs (except for this year).

Any new deposits go into the taxable account. Also sold my house a couple years ago, so that went into taxable also.
Green Street
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Re: For those with $500k-$1m in investments...

Post by Green Street »

31.
Taxable 45%
Tax advantaged 55%
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tony_roach
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Re: For those with $500k-$1m in investments...

Post by tony_roach »

Mid-40s and currently 76% tax deferred, 9% Roth, 15% taxable
Millennial
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Re: For those with $500k-$1m in investments...

Post by Millennial »

35 YO, joint with wife.

$1.42MM investments

60% retirement
Boglebiker
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Re: For those with $500k-$1m in investments...

Post by Boglebiker »

44 and roughly 60% tax advantaged, 40% taxable.
moorso
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Re: For those with $500k-$1m in investments...

Post by moorso »

67 years old
27% taxable
27% roth
46% ira
mervinj7
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Re: For those with $500k-$1m in investments...

Post by mervinj7 »

mid 30s
81% Tax-Advantaged
19% Taxable

History:
1. Started with almost all contributions going to Tax-Advantaged
2. Once we were able to max-out tax-advantaged available at the time, started investing in taxable
3. Recently, got access to even more tax-advantaged space (e.g. Mega-Backdoor Roth and 457b). Now, all new contributions are to tax-advantaged. New contributions to taxable are unlikely for the foreseeable future since we can no longer max out the larger limits.
EverHopeful
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Re: For those with $500k-$1m in investments...

Post by EverHopeful »

60 & 54

15% Taxable (inheritance helped give us this cushion)
20% Roth
65% PreTax/IRA/Rolled 401k*

*we have 24% cash which we plan to invest 12% in Total Stock and possibly 12% in Bonds or keep in the MM, we are nervous because of sudden retirement (dh lost job due to Covid impacted industry) and we need to bridge to SS.
novemberrain
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Re: For those with $500k-$1m in investments...

Post by novemberrain »

More than $1M in investible.
23% taxable, 77% tax advantaged
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Sandtrap
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Re: For those with $500k-$1m in investments...

Post by Sandtrap »

Admiral wrote: Thu May 18, 2017 10:49 am 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.
100% taxable accounts.
No tax advantaged accounts. (No IRA, Roth, 401, HSA, and other letters and numbers)

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

Post by JS-Elcano »

late 40s - got a late start and just crossed the 500k mark at the end of July:

78% tax-advantaged (403b)
15% taxfree (Roth)
7% taxable

shooting for an early-ish retirement where I can live off my Roth IRAs for 5 years until Medicare :beer
infotrader
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Re: For those with $500k-$1m in investments...

Post by infotrader »

Age: 60
Taxable: 20%
Tax-deferred: 49% (too high, sigh...)
Roth: 31%
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Bluce
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Re: For those with $500k-$1m in investments...

Post by Bluce »

Admiral wrote: Thu May 18, 2017 10:49 am 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.
I started a SEP-IRA in 1990. Sometime around 1997 I started a taxable account because I had extra money after maxing my SEP every year. The taxable account today is about 23% of my total portfolio (I'm 70 and my AA is 30/70). Had I not done that, that money would have probably disappeared, ha.

However, once I had enough to retire on I started to relax, and in 2014 I took a chunk out and put it down on a Corvette. No regrets!

It has varied throughout the years, depending on how much extra money I had, but I am currently adding $250 monthly to the taxable account.
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mmmodem
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Re: For those with $500k-$1m in investments...

Post by mmmodem »

3 years ago when this question was asked, we were 100% in tax advantaged. That's the way I want it because:

1. We don't make enough to max out retirement accounts every year.
2. We plan to retire early at 50 and want to avoid paying taxes to ensure this happens. There are plenty of ways to access retirement accounts penalty free before 59.5.

Now, we do have a 20% in taxable from a home sale but that will be gone soon into our next home.
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Makaveli
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Re: For those with $500k-$1m in investments...

Post by Makaveli »

Low 30’s, 85:15 AA

53% : 47% taxable to tax advantaged
houseofnine
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Re: For those with $500k-$1m in investments...

Post by houseofnine »

52/58

Just out of OPs range

32% taxable
60% tax-deferred, -advantaged
8% EF/cash

Seems to give the most flexibility as we approach retirement, but I could be wrong.
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MrBobcat
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Re: For those with $500k-$1m in investments...

Post by MrBobcat »

54/55

38% SEP-IRA/HSA
40% Roths
22% Taxable

Taxable is growing by far the fastest right now as about 1/3 savings goes into SEP, Roth and HSA (all maxed) and 2/3 to taxable. I can no longer put into a Roth due to SEP account so additional contributions have decreased to $7K/year for the Mrs's Roth. Anyway planned or not we'll have a significant percentage of our retirement funds with the bulk of the tax already paid on them.
terran
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Re: For those with $500k-$1m in investments...

Post by terran »

MrBobcat wrote: Sun Sep 06, 2020 12:34 pm 54/55

38% SEP-IRA/HSA
40% Roths
22% Taxable

Taxable is growing by far the fastest right now as about 1/3 savings goes into SEP, Roth and HSA (all maxed) and 2/3 to taxable. I can no longer put into a Roth due to SEP account so additional contributions have decreased to $7K/year for the Mrs's Roth. Anyway planned or not we'll have a significant percentage of our retirement funds with the bulk of the tax already paid on them.
Are you self employed, or is the SEP provided by your employer? If you're self employed, do you have employees, and if not have you considered a solo 401(k)? That would both offer higher limits, and if you rolled the SEP into it you could backdoor Roth contributions again.
rockstar
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Re: For those with $500k-$1m in investments...

Post by rockstar »

55% taxable
45% deferred

This is because I end up maxing out my deferred and still have far more to save. Basically, because I get the most pleasure out of hiking and camping, I really don't spend that much money. I expect my taxable to continue to grow faster than my deferred.
bobdylan
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Re: For those with $500k-$1m in investments...

Post by bobdylan »

38% taxable, the rest is deffred. I am young, so it is important to have a good amount in taxable.
kbjeffrey
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Joined: Fri Aug 07, 2020 4:55 pm

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

Post by kbjeffrey »

Age 57

Total: $995,450
Tax Advantaged: 83% (401K (traditional & roth), IRA (traditional), HSA)
Taxable: 17%
infotrader
Posts: 338
Joined: Tue Feb 28, 2017 2:39 pm

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

Post by infotrader »

infotrader wrote: Sat Sep 05, 2020 9:05 pm Age: 60
Taxable: 20%
Tax-deferred: 49% (too high, sigh...)
Roth: 31%
I think I want to change it to:

Taxable: 20%
Tax-disadvantaged: 49% (the worst kind of money, too high, sigh...)
Tax free: 31%
vrex
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Joined: Mon Jun 08, 2009 9:26 pm

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

Post by vrex »

Age 69
20% Taxable
80% Roth
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