How much of your Net Worth are taxable ??

[Jack0Life]

As an interesting exercise, I separated all my assets between taxable vs non-taxable.
I know Taxable doesn't mean you will be taxed based of different variables. Example for a married couple, the first $24,800 are exempted 2020.
I knew I didn't have a lot of taxable income once we retire but after I made the list, I was surprised how little it was.
Basically, all our income will be tax-free.

           Non-Tax         Taxable
House 1      210000                  If we sell this house after next yr, our capital gains taxed 0 as we are under the threshold.
House 2      140000                  Principle in primary home
Assets         45000   
Gold           6000   
Loan           182484                  Personal Loan. We are getting 3.5 interests.
Etrade         35125                   Just CASH sitting in here right now.
Cash           75723   
Roth-ira       92401   
Index F       74359   11307
IRA                        51527
401k                      19364
HSA                       17438
Wife-Roth   18129   
Wife-IRA                41526
Wife-401k              19171
Wife-HSA               5300
      
      
      
TOTAL      $879,221   $165,633

[use2betrix]

Approx. 256,000 in non-taxed accts (401k, Roth IRA, HSA)
Approx. 350,000 in taxable investment accts
Approx. 47k in savings/checking


I’m 32 so my non-taxed accts can only grow so fast. I’ve been maxing my 401k for a while, and haven’t been eligible for a regular Roth IRA for a while, so I’m a bit limited there. Everything else i save is getting dumped into my taxed accts.

[2sk22]

Ultimately all of these accounts are taxable :-)

But some of your savings accounts may be tax deferred.

[ol1970]

I only have about 5% of my net worth that is tax differed (old 401k) on an 8 figure net worth.  I have always wondered how/if 401K millionaires calculate their true net worth when considering retirement.  $3M post tax is not the same as a 401K with $3M.

[Saffron]

About $50K. Net worth is about $145K

$20K Cash (spread out over several bank accounts)

Taxable Brokerage
$10K Gold ETF (IAU)
$7K Long Term US Treasuries (VLGSX)
$7K Long term Corporate bonds (VWESX)
$7K REIT (VGSLX)

The rest is in the my US government retirement TSP account and Roth IRA:

40:40:20 C-fund, S-Fund, I-fund respectively

IRA is split between REIT and a Small Cap fund.

I keep my retirement account fairly aggressive, while my taxable account is both conservative and contains asset classes that I don't have available to me in my TSP account. Taxable is mostly treated like my secondary emergency fund currently.

I'm only currently adding to my IRA and TSP because that's all I can save. Once I get those maxed out, I'll probably add more aggressive funds to my brokerage. I'm currently cash heavy, but I'm saving up for some medical expenses in the next year or so.

[Habilis]

I’ve been maxing my 401k for a while, and haven’t been eligible for a regular Roth IRA for a while, so I’m a bit limited there.

Backdoor Roth is an option if you are above the direct contribution limit. You make a non-deductible contribution to a traditional IRA then roll it over into a Roth.

https://www.physicianonfire.com/backdoor/

[SimpleCycle]

About 13% of our net worth is in a taxable brokerage account.  The rest is in tax deferred accounts, Roth IRAs, cash, and home equity.  We're in our 40s so we've had substantial time to build up tax deferred savings.  And a good chunk of what used to be in our taxable account is now home equity instead.

[Greenstache]

Several thoughts, OP - the HSA account can be moved over to the nontaxable column (shouldn't ever incur taxes as long as spent on qualifying medical expenses).  Secondly, the personal loan isn't (or shouldn't be) tax-free income.  That income is most definitely taxable.

[ender]

I’ve been maxing my 401k for a while, and haven’t been eligible for a regular Roth IRA for a while, so I’m a bit limited there.

Backdoor Roth is an option if you are above the direct contribution limit. You make a non-deductible contribution to a traditional IRA then roll it over into a Roth.

https://www.physicianonfire.com/backdoor/

Or a megabackdoor if your 401k allows it.

If you have large traditional IRA assets you can always check if your 401k allows rollovers into it too.

[Loren Ver]

We only really look at investment for our next worth as our other assets aren't worth very much and we don't plan on liquidating them nor going through the process of calculating their worth.  We didn't always have good employers 401k or HSA options nor the knowledge of how tax helpful they could be until a few years before retirement.  But since we are keeping our income low, we are still paying 0 income tax (capital gains).

For investment we are:
60% taxable brokerage accounts.  Paying zero due to income levels in FIRE.
32% tax deferred (401k, IRA etc.)
8% HSA 

Loren

[Much Fishing to Do]

$2M in taxable accts

$550k in tax deferred
$340k in post-tax

$500k in real estate

$400k in 529s
$100k in DAF

[Jack0Life]

Several thoughts, OP - the HSA account can be moved over to the nontaxable column (shouldn't ever incur taxes as long as spent on qualifying medical expenses).  Secondly, the personal loan isn't (or shouldn't be) tax-free income.  That income is most definitely taxable.

HSA- That is TRUE.
Personal loan. YES the interest should be tax but its a loan to my BIL for their primary home. Nobody is dumb enough to report the interests as income. One of my dumber investment. If I had that money to dump into the market while it was down, could have made an easy $50k+ by now.

[Greenstache]

I guess by "dumb enough" you mean "actually obeys the tax law" - there is no grey area here.  You might be more motivated to properly report this if you find out that your BIL is deducting the interest secured by his primary residence - he should be deducting it, and the IRS should see a nice red flag for the missing income on your side.

If your analysis of whether things are taxable in retirement relies on outright cheating, then yes, it's easy to proclaim that not much will be taxed.  An alarming approach.

[Jack0Life]

I guess by "dumb enough" you mean "actually obeys the tax law" - there is no grey area here.  You might be more motivated to properly report this if you find out that your BIL is deducting the interest secured by his primary residence - he should be deducting it, and the IRS should see a nice red flag for the missing income on your side.

If your analysis of whether things are taxable in retirement relies on outright cheating, then yes, it's easy to proclaim that not much will be taxed.  An alarming approach.

You must live in some kind other kind of reality.
In your world if you want to claim interest income from family members, go ahead. You don't need to tell me whats "right" and "wrong". Find me another person who lend $200k @ 3.5% for 30 yrs to a family and claim their interest income, then you can come back to me and discuss what's morally "right" or "wrong".
While you're sitting on your high horse, you don't even know what you're talking about. Deducting mortgage interests and among other things need to be over $24,000 to itemize.. Last time I look, $500 of interests per month is not enough to itemize. 

[Laserjet3051]

Ultimately all of these accounts are taxable :-)

But some of your savings accounts may be tax deferred.

Not necessarily true. Contributions to tax deferred accounts can be distributed to folks in the 0% tax bracket. In such cases, money is untaxed going in and coming out. I am aware of several people close to me for whom this is true.

[oldmachines]

I pay property taxes on my real estate. Therefore it's taxable in my world.