tcu2003
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Post by tcu2003 on Sept 4, 2020 20:34:08 GMT -5
I was checking our various account values and statments for my monthly net worth update, and realized we crossed the $2M threshold, which has been a stretch goal the last year+, so yay!
Here's my August snapshot:
Checking/Savings: $149k
House: $428k
Retirement: $1.417M
Brokerage: $4.5k
529s: $44k
Total NW: $2,042,447
The list above excludes our cars, which are worth around $30k combined, but I leave them out because we're unlikely to sell, and need them to get to/from work, kids schools, etc. in the land of suburbia.
For reference, DH is 43, I am 38, DS is 8, and DD is 4. We live in the midwest, so no crazy living expenses, and DH and I are both engineers.
We got married in July 2010, but the oldest NW data I have is from August 2011. Our NW in August 2011 was $406,556 (retirement then was $224k so clearly growth and contributions there have been a major factor).
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irishpad
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Post by irishpad on Sept 4, 2020 20:45:24 GMT -5
Congratulations!!!!! (will you adopt me? lol)
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busymom
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Post by busymom on Sept 4, 2020 22:08:25 GMT -5
Congratulations! (Don't tell the family.) Especially now, it's nice to have a healthy cushion if unemployment is a possibility.
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Knee Deep in Water Chloe
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Post by Knee Deep in Water Chloe on Sept 4, 2020 22:46:47 GMT -5
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Ava
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Post by Ava on Sept 4, 2020 22:55:56 GMT -5
Impressed!! That's what I call success.
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buystoys
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Post by buystoys on Sept 5, 2020 6:36:17 GMT -5
Great job!
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dannylion
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Post by dannylion on Sept 5, 2020 8:22:47 GMT -5
Well done! Congratulations!
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tcu2003
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Post by tcu2003 on Sept 5, 2020 8:30:42 GMT -5
Congratulations! (Don't tell the family.) Especially now, it's nice to have a healthy cushion if unemployment is a possibility. No danger of telling the family - that’s why I posted here, where it’s mostly anonymous. 😉 Never say never, but I don’t think either of us will end up unemployed soon. We work for the same company, and they did some layoffs in April, and neither of us were in danger. Part of the reason for the cash reserves are to cover a down payment if I’m offered an equity stake in our employer this year. We thought it might happen last year but the company put all promotions to the equity level on hold while they were in the midst of strategic planning. They are doing promotions to that level this year and I know my name is being submitted, so we’ll see. The other part is DH and I are either too conservative with our money or too lazy to figure how/where we want to invest outside of 401ks and backdoor Roth IRAs. Probably a combo of both. I have a small amount in mutual funds from 15 years ago, but haven’t done anything since then. Now that we finally opened Roth IRAs a couple of years ago through Vanguard, I’ll probably look at some mutual fund taxable account investing after I learn if I need a down payment or not, and go from there.
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azucena
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Post by azucena on Sept 8, 2020 7:44:54 GMT -5
tcu - any suggestions on how I should learn more about backdoor roths? that's on my to do list.
Congrats!
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muttleynfelix
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Post by muttleynfelix on Sept 8, 2020 18:28:44 GMT -5
Damn girl! Congrats!
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Bonny
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Post by Bonny on Sept 8, 2020 18:37:28 GMT -5
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jd2005
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Post by jd2005 on Sept 9, 2020 11:17:33 GMT -5
Congratulations!!! DW and I are....oooooh so close to the 1M line. We should be there next month (unless market tanks).
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tcu2003
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Post by tcu2003 on Sept 9, 2020 12:12:16 GMT -5
tcu - any suggestions on how I should learn more about backdoor roths? that's on my to do list. Congrats! I googled it and read a few different articles about it I found there - I can't remember which ones or I would link them for you. I ended up setting ours up with Vanguard as I could do the entire process online and didn't have to mess with contributing and then calling anyone to have them roll it over. But the short story is that we contribute to a traditional IRA, and then once the deposit clears, I roll it over to a Roth IRA. It usually takes a couple of days, and if I'm busy, the money might sit there for a day or two past that, but it's never been long enough to trigger any tax implications - the money is basically in a money market savings account within the traditional IRA, so it doesn't earn anything (if it did, I'd owe taxes on the gains when I rolled it over). Then once the money is in the Roth IRA, I just invest it in the mutual funds I want that Vanguard offers. There is a weird thing that if you already have an existing IRA account (like from an old 401k that you rolled over, or whatever reason), there are some tax implications if you roll money from the traditional to the Roth. We didn't have that, so it wasn't an issue for us and I don't remember all of the specifics around it.
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tcu2003
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Post by tcu2003 on Sept 9, 2020 12:12:51 GMT -5
Congratulations!!! DW and I are....oooooh so close to the 1M line. We should be there next month (unless market tanks). We all want to see a post when you get there! And fingers crossed the market doesn't tank!!
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justme
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Post by justme on Sept 9, 2020 12:22:19 GMT -5
tcu - any suggestions on how I should learn more about backdoor roths? that's on my to do list. Congrats! I googled it and read a few different articles about it I found there - I can't remember which ones or I would link them for you. I ended up setting ours up with Vanguard as I could do the entire process online and didn't have to mess with contributing and then calling anyone to have them roll it over. But the short story is that we contribute to a traditional IRA, and then once the deposit clears, I roll it over to a Roth IRA. It usually takes a couple of days, and if I'm busy, the money might sit there for a day or two past that, but it's never been long enough to trigger any tax implications - the money is basically in a money market savings account within the traditional IRA, so it doesn't earn anything (if it did, I'd owe taxes on the gains when I rolled it over). Then once the money is in the Roth IRA, I just invest it in the mutual funds I want that Vanguard offers. There is a weird thing that if you already have an existing IRA account (like from an old 401k that you rolled over, or whatever reason), there are some tax implications if you roll money from the traditional to the Roth. We didn't have that, so it wasn't an issue for us and I don't remember all of the specifics around it.That's a big reason that's kept me from rolling over my old 401k. Luckily my old company charges $0 fees and has a great selection of options. My current job charges small fees (I think it's like $25/year) but has decent options. So I'd be tempted to move it out, but also afraid of that tax shit if I get up to the limits. I'm pretty far from it now, but I'm only like $5k from maxing my 401k so all future raises will go straight to AGI. Decent shot of not hitting it if I stay single, but if I get married we'd likely hit it soon if not over depending on his income. I like putting stuff in Roth, though work did just add a Roth 401k option which is nice though raises the AGI. Maybe just shove more money into my regular ROTH now.
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ArchietheDragon
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Post by ArchietheDragon on Sept 9, 2020 12:28:49 GMT -5
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jerseygirl
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Post by jerseygirl on Sept 9, 2020 12:38:39 GMT -5
If you roll over from a regular IRA to a Roth IRA, you will owe ordinary tax on the amount (not capital gains) same as any other income. But once in the Roth no taxes either when in the account or when withdrawn I’m moving some from my regular IRA since I’m required to take out RMDs and pay income tax on distribution. I’ll pay the tax on withdrawal but once in the Roth - no taxes!! Plus by withdrawing, the regular IRA account balance should be lower so lower RMDs Wish we had done this sooner, taxes will likely be increasing. Biden is already discussing adjusting tax deductions for 401k s , larger or smaller deduction depending on income - a middle class tax hit. Also there is talk of instituting a wealth tax which would likely hit IRAs. ]If you have >=$100000 you have more than most so might be put in the ‘wealthy’ category who need to pay their fair share ( by the way what is the fair share? )
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tallguy
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Post by tallguy on Sept 9, 2020 22:00:31 GMT -5
If you roll over from a regular IRA to a Roth IRA, you will owe ordinary tax on the amount (not capital gains) same as any other income. But once in the Roth no taxes either when in the account or when withdrawn I’m moving some from my regular IRA since I’m required to take out RMDs and pay income tax on distribution. I’ll pay the tax on withdrawal but once in the Roth - no taxes!! Plus by withdrawing, the regular IRA account balance should be lower so lower RMDs Wish we had done this sooner, taxes will likely be increasing. Biden is already discussing adjusting tax deductions for 401k s , larger or smaller deduction depending on income - a middle class tax hit. Also there is talk of instituting a wealth tax which would likely hit IRAs. ]If you have >=$100000 you have more than most so might be put in the ‘wealthy’ category who need to pay their fair share ( by the way what is the fair share? ) Just a couple things to clarify: First, it is not a "rollover" from a traditional IRA to a Roth IRA. It is a conversion. You are correct that ordinary income taxes are due on the amount converted. Second, it is not clear from your post exactly what you are doing. For those who don't know, if someone is taking RMDs from their account already, those monies are not eligible to be converted. The withdrawal of the RMD must be done first before any other money can be converted to the Roth. You cannot convert the RMD itself.
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jerseygirl
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Post by jerseygirl on Sept 9, 2020 22:11:54 GMT -5
If you roll over from a regular IRA to a Roth IRA, you will owe ordinary tax on the amount (not capital gains) same as any other income. But once in the Roth no taxes either when in the account or when withdrawn I’m moving some from my regular IRA since I’m required to take out RMDs and pay income tax on distribution. I’ll pay the tax on withdrawal but once in the Roth - no taxes!! Plus by withdrawing, the regular IRA account balance should be lower so lower RMDs Wish we had done this sooner, taxes will likely be increasing. Biden is already discussing adjusting tax deductions for 401k s , larger or smaller deduction depending on income - a middle class tax hit. Also there is talk of instituting a wealth tax which would likely hit IRAs. ]If you have >=$100000 you have more than most so might be put in the ‘wealthy’ category who need to pay their fair share ( by the way what is the fair share? ) Just a couple things to clarify: First, it is not a "rollover" from a traditional IRA to a Roth IRA. It is a conversion. You are correct that ordinary income taxes are due on the amount converted. Second, it is not clear from your post exactly what you are doing. For those who don't know, if someone is taking RMDs from their account already, those monies are not eligible to be converted. The withdrawal of the RMD must be done first before any other money can be converted to the Roth. You cannot convert the RMD itself. Sorry I meant for this year since no RMDs are required, using moneys That would have been RMDs but aren’t this year Agree, Next year will need to take RMDs first then additional IRA money to move to Roth
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