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LSUTOM07
LSU Fan
Baton Rouge
Member since Dec 2011
618 posts

Max 401k, Max IRA, then what..?
For those who are maxing out their 401k & IRA, what are you doing with additional savings? Stocks, real estate, strippers and coke? Are there any other avenues for reducing tax exposure?


Teddy Ruxpin
LSU Fan
Austin, TX
Member since Oct 2006
30046 posts

re: Max 401k, Max IRA, then what..?
HSA and 529 plan.

I think after that you are in whatever investments you feel like having in Taxable.

You also can start maximizing your tax exposure. For example, at first you may be 100% stocks in your 401k, ROTH/whatever. You may be 60/40 US/International Split.

However, once you are "filled up" it becomes advantageous to move international into your taxable account to take advantage of the foreign tax credit.

Stuff like that.
This post was edited on 7/25 at 11:48 am


notsince98
Missouri Fan
KC, MO
Member since Oct 2012
6041 posts
 Online 

re: Max 401k, Max IRA, then what..?
max out HSA.


Fat Bastard
Boston College Fan
Paradise
Member since Mar 2009
30305 posts

re: Max 401k, Max IRA, then what..?
i don't max out my 401k only meet match. If you want to do it that is your choice. i can get way better returns on RE plus it is not locked up and i get disposable cash flow NOW. i would not even consider RE a " fully taxable" account with so many writeoffs lowering tax burden. call it semi-taxable unless you are phased out.
This post was edited on 7/25 at 12:01 pm


lynxcat
Rutgers Fan
Member since Jan 2008
18524 posts

re: Max 401k, Max IRA, then what..?
Max HSA is after 401k up to company match.

401k to company match
HSA max
Max ROTH IRA if not phased out
Max remainder of 401k
529 if you have kids
Savings account / personal investing thereafter

That order applies to most non-self employed individuals.




Fat Bastard
Boston College Fan
Paradise
Member since Mar 2009
30305 posts

re: Max 401k, Max IRA, then what..?
these posts are funny. Most people do not have the income to max all their retirement accounts and still have a shitload to dump into RE and stocks etc for any relevant type of return. Because believe me, it does take a bunch for the last 2 i referenced. I won't sugarcoat it. very tough to do all that.


ghost2most
LA-Lafayette Fan
Member since Mar 2012
1222 posts

re: Max 401k, Max IRA, then what..?
Hmm, would like to hear more about the tax savings on international stocks in a taxable account. Wasn't familiar with this. I knew municipal bonds could earn dividends tax free but this international angle is new to me.

I max out 401k, HSA, Roth and put a lot in taxable account, that I'm careful about not selling (at least in the first year).

That's why in the other thread I was asking about real estate to diversify.


JL
LSU Fan
Member since Aug 2006
2471 posts

re: Max 401k, Max IRA, then what..?
Real estate and investment account with mutual funds outside of my 401K. I'm not waiting for my 401K to kick in to retire.


Fat Bastard
Boston College Fan
Paradise
Member since Mar 2009
30305 posts

re: Max 401k, Max IRA, then what..?
quote:

Real estate and investment account with mutual funds outside of my 401K. I'm not waiting for my 401K to kick in to retire.






me either. excellent answer! once i can withdraw all my retirement $$$ it is all being flipped into my RE portfolio. i will keep brokerage accounts though.


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Fat Bastard
Boston College Fan
Paradise
Member since Mar 2009
30305 posts

re: Max 401k, Max IRA, then what..?
quote:

I max out 401k, HSA, Roth and put a lot in taxable account, that I'm careful about not selling (at least in the first year).

That's why in the other thread I was asking about real estate to diversify.




sounds like you are doing great then. If you have a shitload leftover to invest in RE more power to you. I simply do not have the funds to max a 401k, my ROTh and wifes ROTh and then do my RE and dividend payers. I am not a fan of 401k's anyway and have stated this for years with links backing me up as far as lack of comtrol among other things. However i will not let free money fly away unmatched.


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Teddy Ruxpin
LSU Fan
Austin, TX
Member since Oct 2006
30046 posts

re: Max 401k, Max IRA, then what..?
quote:

these posts are funny. Most people do not have the income to max all their retirement accounts and still have a shitload to dump into RE and stocks etc for any relevant type of return. Because believe me, it does take a bunch for the last 2 i referenced. I won't sugarcoat it. very tough to do all that.


Ya, but he asked, so I answered.


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Teddy Ruxpin
LSU Fan
Austin, TX
Member since Oct 2006
30046 posts

re: Max 401k, Max IRA, then what..?
quote:

Hmm, would like to hear more about the tax savings on international stocks in a taxable account. Wasn't familiar with this. I knew municipal bonds could earn dividends tax free but this international angle is new to me.



Bogleheads going into it.

Part of a larger article you may find useful.


PhiTiger1764
LSU Fan
Lurker since Aug 2003
Member since Oct 2009
10583 posts
 Online 

re: Max 401k, Max IRA, then what..?
This may be a pretty basic question but when you say real estate, do you just mean houses/condos that you rent out? Or is it more broad than that?


ghost2most
LA-Lafayette Fan
Member since Mar 2012
1222 posts

re: Max 401k, Max IRA, then what..?
Thanks for the link. Diving into it.


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Fat Bastard
Boston College Fan
Paradise
Member since Mar 2009
30305 posts

re: Max 401k, Max IRA, then what..?
quote:

This may be a pretty basic question but when you say real estate, do you just mean houses/condos that you rent out? Or is it more broad than that?




yes residential RE as rentals,SFH, multifamily, etc...may get into commercial but that is not my specialty. Once i get the time i will do flips as well as my rentals. I have a blueprint and a plan and part of my team is already made. we have a master flipper who posts here named steventiger.

the thing about flips is IF you can get a LOC big enough to do these cash buys after home price, rehab, then sale.....you are using all the banks money and never a dime out your own pocket. wash rinse repeat as long as you find good deals which are not easy. it is genius. easier said than done though as always.

you can use a HML other than a bank LOC but usually HML's want you to have skin in the game as well so you will have to put money up front also for purchases instead of using a LOC from a bank

This post was edited on 7/25 at 1:53 pm


LSUTOM07
LSU Fan
Baton Rouge
Member since Dec 2011
618 posts

re: Max 401k, Max IRA, then what..?
quote:

these posts are funny. Most people do not have the income to max all their retirement accounts and still have a shitload to dump into RE and stocks etc for any relevant type of return. Because believe me, it does take a bunch for the last 2 i referenced. I won't sugarcoat it. very tough to do all that.


How much would it take to get into RE? Im assuming 20-25% down on investment properties + rehab costs + cushion for repairs (if rental)?

We are putting away an additional 30k/year after retirement accounts are maxed, with another 60k sitting in the market. I will be unable to invest in RE local due to the high cost. I would be investing remotely, and paying a management company their cut. I have a feeling that may drastically decrease my returns.. How do you manage your property? Or are you only flipping?


Fat Bastard
Boston College Fan
Paradise
Member since Mar 2009
30305 posts

re: Max 401k, Max IRA, then what..?
quote:

How much would it take to get into RE? Im assuming 20-25% down on investment properties


yes. you always keep 6 months reserves per property for V & M.

quote:

We are putting away an additional 30k/year after retirement accounts are maxed, with another 60k sitting in the market.


holy shite that is awesome! put it to work!

quote:

I would be investing remotely, and paying a management company their cut.


nothing wrong with that. smart move actually
go where the returns are!

quote:

I have a feeling that may drastically decrease my returns.


nope. not if you buy right!
Wish i had the links for you we have discussed this so much here. All i have is my RE thread. maybe you can read through it.

LINK

read it all. should be something there to help you make a good decision.

quote:

How do you manage your property?


PM company



This post was edited on 7/25 at 7:39 pm


Junky
Louisiana Tech Fan
Louisiana
Member since Oct 2005
3634 posts

re: Max 401k, Max IRA, then what..?
quote:

these posts are funny.


I'm sure there are far more of us that don't do nearly this. Sure, we max our 401k matches, put a bit towards roths and sometimes max it but we have other expenses we want to do now. We are currently working on saving for child expenses down the road, but we don't break our backs for it. Do we take three vacations a yr, yes, and we would rather do this and enjoy life while young and don't have kids. We love our jobs and make decent money to us. Planning is more important than anything else. If you're doing your plan, who cares what others think - it's your life.

I laugh at people worrying about saving saving saving on the internet. Just do your thing, other people have different goals in life. I swear the greatest and worst invention in the world was the internet.


LSUTOM07
LSU Fan
Baton Rouge
Member since Dec 2011
618 posts

re: Max 401k, Max IRA, then what..?
quote:

Wish i had the links for you we have discussed this so much here. All i have is my RE thread. maybe you can read through it.



Thanks for the replies! I will dig into this to get more info. The recommnedation from this board to check out Biggerpockets has also been a great resource.



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LSUTOM07
LSU Fan
Baton Rouge
Member since Dec 2011
618 posts

re: Max 401k, Max IRA, then what..?
quote:

I laugh at people worrying about saving saving saving on the internet. Just do your thing, other people have different goals in life. I swear the greatest and worst invention in the world was the internet.


This board is a great place to get feedback as people set and reassess their goals. Although all of us have different goals, it's great to get feedback from others with a similar mindset. It seems that most people on this board are "doing their thing", and simply sharing what they have learned along the way.


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