Parkslope, you are right, the idea of equal funding is arbitrary and lacks any evidentiary support, but it keeps it easy to understand. Plus, once we reach retirement and our own unique situations, we are likely to wish for more of one leg in favor of another. There is no one right answer for everyone, so I'm not sure what evidence might be helpful. On another thought, I suppose the tax-deferred balances should be higher since 1/4 of that belongs to the IRS. Thanks for reading and commenting.
Rick, this may sound simplistic, but you won't know the results until your time is up. The main thrust of the article was gaining the flexibility to draw income from wherever it suits you best. The once strongly held idea that taxes will always be less for you in retirement is history. I have no idea what tax levels will be when I'm retired, let alone what tax bracket I'll be in. Phil
Roboticus, sorry for the delayed response. I didn't have any particular answers in mind when creating the post. It was more in response to the preponderance of views, at least in my experience, that talk of passive investing like making the right selections is the easiest thing to do. Which seems curiuos at at time when there are more more ETFs than individual stocks. In actuality, I think the issue investors are really rallying behind are fees, with good reason. Substituting index exposures for individual stocks or mutual funds is fine, but it doesn't relieve investors of the need to be intentional, which can be applied in any number of ways.
Comments:
Parkslope, you are right, the idea of equal funding is arbitrary and lacks any evidentiary support, but it keeps it easy to understand. Plus, once we reach retirement and our own unique situations, we are likely to wish for more of one leg in favor of another. There is no one right answer for everyone, so I'm not sure what evidence might be helpful. On another thought, I suppose the tax-deferred balances should be higher since 1/4 of that belongs to the IRS. Thanks for reading and commenting.
Post: Three Other Legs
Link to comment from June 3, 2021
Rick, this may sound simplistic, but you won't know the results until your time is up. The main thrust of the article was gaining the flexibility to draw income from wherever it suits you best. The once strongly held idea that taxes will always be less for you in retirement is history. I have no idea what tax levels will be when I'm retired, let alone what tax bracket I'll be in. Phil
Post: Three Other Legs
Link to comment from June 3, 2021
Roboticus, sorry for the delayed response. I didn't have any particular answers in mind when creating the post. It was more in response to the preponderance of views, at least in my experience, that talk of passive investing like making the right selections is the easiest thing to do. Which seems curiuos at at time when there are more more ETFs than individual stocks. In actuality, I think the issue investors are really rallying behind are fees, with good reason. Substituting index exposures for individual stocks or mutual funds is fine, but it doesn't relieve investors of the need to be intentional, which can be applied in any number of ways.
Post: We’re All Active
Link to comment from April 13, 2021