Good catch! The rental property absolutely is part of our net worth, but I intentionally left it off as I don't consider it very liquid, and planned to keep it for a while.Your $1.2M seems to be off because it does not include the home equity in the rental property which is one of your investments. (You would not want to include the home equity in your house which you are living in.)
That will also change the percentages in your post and when looking at your asset allocation your would have three asset classes, not two. They would be Stocks/Bonds/Investment property.
Thanks for the advice. So you think it would be best to max out my 401k and her 457b with pre-tax dollars, i.e., both 100% Traditional, and then continue to do the backdoor Roth IRA and HSA too of course, correct? Just confirming that I'm understanding your advice correctly.The difference between your current 24 percent tax bracket and the 28 percent tax brackets is only 4% which to me is not nearly enough to me to make paying taxes decades early a worthwhile choice.
There are lots of other tax complications like how your Social Security is taxed but I would max out all the deductible traditional retirement accounts that you can when you have a choice. You might be able to do Roth conversions after you retire if it makes sense then.
The Roth accounts are still great after you have maxed out your deductible accounts.
Statistics: Posted by bogle-header — Mon Jan 27, 2025 9:37 pm — Replies 8 — Views 962