gpburdell

quote:

---

Assuming exact same contribution is cheating. To be accurate, you start both scenarios with an equal amount of $ available to invest. Then account for up front taxes on Roth (lower net contribution) versus 100% going into traditional but account for taxes on back end.

---

I agree with you. You have to account for the upfront taxes paid which decrease your total amount of $ you can invest. Now the other way to look at it is have both 401ks types invest the the same amount. However, you take the income tax savings from the trad 401k & invest that in a taxable account.

Imo that combination of trad 401k & taxable account is a better way to go (along with roth ira & hsa). Then you still have the option to do Roth conversions with the trad 401k at a low tax rate in the future to further optimize.

Some comments:

-$140k would be a 6% withdraw rate which is pretty aggressive imo. Though if you're planning for less than 30 yr retirement then maybe it's fine. I personally would go with a variable strategy like VPW which is what I will do. https://www.bogleheads.org/wiki/Variable_percentage_withdrawal

-There are ways to access 401k before 59.5: https://www.madfientist.com/how-to-access-retirement-funds-early/

-Fyi rule of 55 applies to all 401k plans as it's an IRS rule. Just be aware that not all 401k plans allow partial distributions which is what you want. Verify that's allowed under your 401k plan.

-For health insurance, many early retirees go with ACA. Though it can be expensive if you aren't able to control your taxable income. If your taxable income is too high then you get no premium subsidy. You can check what an ACA plan would cost you here: https://www.healthcare.gov/apply-and-enroll/health-insurance-plans-estimator-overview/

-I assume that you can get private health insurance still that isn't ACA. However ACA plans guarantee that pre-existing conditions are covered and have out of pocket limits. Non ACA plans may or may not offer that.

-I would not pay off a 3.75% mortgage. Just include the mortgage payment as part of your monthly retirement expenses. I have a 2.25% mortgage for another 25 years and I'm looking to retire in 5 years. No way I'm paying that off early. That payment just gets relatively cheaper with inflation each year.

quote:

---

Correct. There is a strategy for this. You really need three different retirement vehicles to draw from. I realize for a lot of folks this isn’t an option but if you have a 401k, Roth, and HSA for example you are going to be able to have a huge advantage when it comes to to withdrawal strategies.

---

Don't forget taxable account and 0% capital gain tax rate.

A single person with no regular income with $65k in capital gains & std deduction would pay 0% in taxes. A MFJ couple would pay no tax on $131k of capital gains.

I like this this site which lets you see how taxes between income & capital gains affect each other:

https://engaging-data.com/tax-brackets/

If island hopping, I'd probably want a minimum of 10 days not counting travel days.

I've been to Maui twice and even staying a week (incl travel days) felt short for just 1 island. Coming from the east coast is brutal and basically the first day will be lost to travel.

quote:

---

You turn 55yo in the year you retire and applies to withdrawals only from the company’s 401k from which you are retiring (and its 401k must allow these early withdrawals)

---

The only thing the company can control is whether you can make partial distributions (i.e. multiple) or you have to take a single distribution for the balance which basically closes the account.

Either way IRS rule of 55 applies to both distribution scenarios above.

For most people rule of 55 only makes sense if the 401k plans allows the partial distributions.

Another vote for Travelpro

I was in Maui this past fall and did road to Hana. Was at Grand Wailea as well. We did the private guided tour as it would have taken 2 cars and no one wanted to deal with driving.

Is it worth it? I don't regret doing it but in no hurry to do it again. I did really like the black sand beach though. However it will basically kill an entire day. You mentioned you're not there long and have other excursions planned. I'd say skip it and wait for a longer trip. An alternative would be doing sunrilse/sunset at Haleakala which won't take an entire day.

We also did snorkeling trip to Molokni this past fall with Trilogy. Haven't been anywhere else, so can't compare. I'm not a big fan of snorkeling to be honest. I only went as our whole group was going. The rest of our group seem to enjoy it.. The next time, I'd rather do a whale watching trip assuming it's the right time of year.

I've been to Mama's before. Pricey and food is average imo. You're paying for that amazing view which you might not even get to see during dinner.

I liked Monkypod alot and will go there again on my next Maui trip. Food was good and place was lively.

quote:

---

f you want to use Hilton points, I suggest these Hilton resorts.
Hilton Waikoloa Village on the Big Island or Grand Wailea on Maui

---

I stayed at Grand Wailea (Waldorf) this past fall and it was great. While I didn't use points, my brother did without any issues.

With Fidelity, you are better off using FDLXX over SPAXX. For 2025, 98% of FDLXX interest is exempt from state taxes where SPAXX is only 60% exempt.

Also FDLXX is technically safer than SPAXX as it's almost all t-bills where SPAXX has alot of other things in it. Though the risk difference is probably insignificant.

quote:

---

Thanks, we have stayed at the Venetian before and wife was wanting to stay at the Cosmo for some reason. I'm leaning toward the Wynn but might do Cosmo if rideshare works this well.

---

The first year Sphere opened, they didn't have rideshare setup like now. They dropped you off away from Sphere and there was no dedicated pickup area. I still remembering having to walk 20-30 mins to one of the hotels to get a ride. Also it didn't help that I was there the week before the first F1 race and construction was a nightmare.

Now they drop you off and pick you up right in front of Sphere.

quote:

---

1. Does every 401k have to participate ?
2. Do you have to take a 1 time lump sum?

---

1) Yes; it's an IRS regulation. The rule of 55 just negates the early withdrawal penalty before age 59.5

2) Depends. You need to check if your 401k plan supports partial distributions in general. This has nothing to do with rule of 55 and it's up to each 401k plan to decide. If your 401k plan doesn't support partial distributions, then you'd have to take a single distribution for the balance of your account.