YouBet said:

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EliteZags said:

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those above with high 401K to Roth IRA ratios, are you inhibited from backdoor Roth IRA from having rollover traditional IRAs from old 401Ks?

I'm at roughly 350K between 3 401ks, and 130K in Roth IRA

have held off on rolling over any 401Ks to try to maintain being able to max backdoor Roth each year as long as possible, but wondering if I'm missing anything with being able to continue this
really value the tax free gains

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Inhibited from a tax perspective, yes. I rolled my 401k and because it was both pre-tax and after-tax contributions it rolled into my Traditional and Roth IRAs so I no longer do a back door Roth.

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Leeman said:

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Tax time - gotta love paying for "unrealized gains" on investments. Unfortunately, will be paying these even when I retire. Ideally, would move money in tax sheltered accounts, but don't want to pay the gains on them now.

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Leeman said:

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Tax time - gotta love paying for "unrealized gains" on investments. Unfortunately, will be paying these even when I retire. Ideally, would move money in tax sheltered accounts, but don't want to pay the gains on them now.

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canadianAg said:

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Have always followed this thread with interest as it was started as I was in my senior year at A&M. But I don't think I've contributed anything.

I've been doing the typical rate race in corporate America and have always had the goal of having a liquid net worth of $1m by 35. Below is my current makeup. It will be heavily market dependent but we have a shot, although more than likely I think we hit it at 36 (currently 32). We've managed to do this with my wife only working part time (10-15 hours a week) for several years now after we started having kids. It can be done, we just don't keep up with the jones'. We keep vehicles a long time. We agreed to get a $30k minivan instead of a $60k suburban even though that's what everyone has. Haven't stretched housing too far. We prefer to spend money on vacations but we still try to take advantage of credit cards etc… I've also been very fortunate in my career to ride someone's coattails and progress quicker than I expected but I certainly worked hard to get noticed and paid my dues early.

It's exciting to finally have it within sight it feels like.

401k: $270k (50/50 Roth and tradition).
Company stock: $120k
Cash value of defined contribution pension: $90k
Roth IRA: $35k
Traditional IRA: $25k
HSA: $40k
Cash: $75k
Not counted: company medical retirement account, no telling if I'll survive layoffs until 50 but if I can, that account will be worth upwards of $500k

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Ghost of Bisbee said:

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Leeman said:

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Tax time - gotta love paying for "unrealized gains" on investments. Unfortunately, will be paying these even when I retire. Ideally, would move money in tax sheltered accounts, but don't want to pay the gains on them now.

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Because of capital gains distributions in ETFs or mutual funds?

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Dill-Ag13 said:

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canadianAg said:

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Have always followed this thread with interest as it was started as I was in my senior year at A&M. But I don't think I've contributed anything.

I've been doing the typical rate race in corporate America and have always had the goal of having a liquid net worth of $1m by 35. Below is my current makeup. It will be heavily market dependent but we have a shot, although more than likely I think we hit it at 36 (currently 32). We've managed to do this with my wife only working part time (10-15 hours a week) for several years now after we started having kids. It can be done, we just don't keep up with the jones'. We keep vehicles a long time. We agreed to get a $30k minivan instead of a $60k suburban even though that's what everyone has. Haven't stretched housing too far. We prefer to spend money on vacations but we still try to take advantage of credit cards etc… I've also been very fortunate in my career to ride someone's coattails and progress quicker than I expected but I certainly worked hard to get noticed and paid my dues early.

It's exciting to finally have it within sight it feels like.

401k: $270k (50/50 Roth and tradition).
Company stock: $120k
Cash value of defined contribution pension: $90k
Roth IRA: $35k
Traditional IRA: $25k
HSA: $40k
Cash: $75k
Not counted: company medical retirement account, no telling if I'll survive layoffs until 50 but if I can, that account will be worth upwards of $500k

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You sound just like me, must be my twin… same age. I've got the same amount of investments down to the ,000 and on track to hit $1mm at 36 based on a 6% return

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1Aggie99 said:

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Seeing as everyone on here is in the millionaire club I'm assuming a few of you have pondered early retirement. Curious as to what number you use when projecting health insurance for the gap between early retirement age and 65? That seems to the biggest unknown.

I like to play everything really conservative so we use $1,000 per month x 2 or $24,000 annually. I'm not 100% comfortable that will cover it 8-10 years from now.

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• 19-44: $28,224
• 45-64 $59,067
• 65-84: $47,098
• 85+: $57,059

Leeman said:

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1Aggie99 said:

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Seeing as everyone on here is in the millionaire club I'm assuming a few of you have pondered early retirement. Curious as to what number you use when projecting health insurance for the gap between early retirement age and 65? That seems to the biggest unknown.

I like to play everything really conservative so we use $1,000 per month x 2 or $24,000 annually. I'm not 100% comfortable that will cover it 8-10 years from now.

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Everything I've seen is $1k per person per month. But obviously that will only go up.

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1Aggie99 said:

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Seeing as everyone on here is in the millionaire club I'm assuming a few of you have pondered early retirement. Curious as to what number you use when projecting health insurance for the gap between early retirement age and 65? That seems to the biggest unknown.

I like to play everything really conservative so we use $1,000 per month x 2 or $24,000 annually. I'm not 100% comfortable that will cover it 8-10 years from now.

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AgsMyDude said:

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Does real estate equity and cash flow count toward this thread's standards?

Asking for a friend

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Kansas Kid said:

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AgsMyDude said:

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Does real estate equity and cash flow count toward this thread's standards?

Asking for a friend

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Definitely if it isn't primary residence.

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YouBet said:

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AgsMyDude said:

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Does real estate equity and cash flow count toward this thread's standards?

Asking for a friend

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If you mean net worth, by definition, real estate counts.

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AgsMyDude said:

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YouBet said:

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AgsMyDude said:

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Does real estate equity and cash flow count toward this thread's standards?

Asking for a friend

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If you mean net worth, by definition, real estate counts.

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Of course. I see several folks talking liquid net worth but then include 401k which I found odd

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TXTransplant said:

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I don't include the equity in my primary residence as part of my net worth because I would have to sell it to realize that money (and then I would have to pay to live somewhere). But not including my 401k (or IRAs, for that matter) is nuts.

It may not be "easily" accessible or accessible without penalty, but it's real money that I've saved from my earnings (and that my various employers have contributed to as part of my compensation). And I'm fully vested, so outside of market fluctuations, there is no loss of value.

I do count the current value of my pension in my net worth, and that's a little more nebulous, since it's value is contingent on me remaining employed at the same place for at least another 10 years. If I left today, I would only receive a fraction of what it's current value is in cash.

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AgsMyDude said:

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TXTransplant said:

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I don't include the equity in my primary residence as part of my net worth because I would have to sell it to realize that money (and then I would have to pay to live somewhere). But not including my 401k (or IRAs, for that matter) is nuts.

It may not be "easily" accessible or accessible without penalty, but it's real money that I've saved from my earnings (and that my various employers have contributed to as part of my compensation). And I'm fully vested, so outside of market fluctuations, there is no loss of value.

I do count the current value of my pension in my net worth, and that's a little more nebulous, since it's value is contingent on me remaining employed at the same place for at least another 10 years. If I left today, I would only receive a fraction of what it's current value is in cash.

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Again, I wasn't saying not to include retirement accounts as part of your net worth.

I am talking about in regards to LIQUID funds. Some in this thread are saying only $1M in liquid funds consider you to be a "millionaire", but are retirement accounts really liquid? If you're below a certain age you would also have to sell them to realize that money and likely with a penalty. REI is the same, just takes a little longer to realize that money.

I think we're all in agreement that both retirements and REI equity should be considered.

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