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re: Basic math of Roth vs Traditional many get wrong
Posted by KWL85 on 5/22/26 at 9:40 am to TorchtheFlyingTiger
quote:
That's the thing, given same growth period and tax rate on contributions and withdrawals it is break even. You start with a smaller net contribution in Roth after accounting for taxes up front. Of course if you selectively ignore that reality and assume equal net contribution you'd always be better off paying no tax at the end. Time in this equation is a constant. Just watch the video and perhaps you'll understand instead of disagreeing based on flawed logic and misunderstanding.
So you are assuming different contributions and same tax rates. I wasn't assuming either. We didn't have Roth as an option thru employer, and made our decisions based on equal contributions. I get that the numbers change using your assumptions. I think Roth early on, switching to traditional once in higher income bracket is a good option for most. I do assume that the longer length of time results in higher gains that are tax free vs tax deferred. It has been a busy week and still haven't watched the video. I will eventually to see if that changes my thinking.
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Thanks for your reply. Not trying to brag. To be clear, I invest in spec houses and rentals. This was my 20 year plan to get out of my stressful day job. I executed the plan and "retired" from my primary career in IT.
I am intentionally focusing on high priced houses for the next year as a strategy. Because the market is telling me to. I did a couple of $1M houses that sold this year. They had far more showings and were easier to sell than lower priced houses this year. My observation is that the higher end customer is not concerned about making their next home purchase, but lower income ranges have become cautious. I research housing data regularly, and my strategy is based on broader data than just my projects. This is where my haves vs have nots comment came from. My lower priced houses are sitting on the market longer than any time since 2007/2008.
In a strong market cycle, I don't take on custom homes. They take more of my time and take longer to get to a payday. I haven't done a custom in years, but am starting one now over concerns about my typical buyer. I am also doing 1 or 2 very expensive spec houses for same reason.
I am intentionally focusing on high priced houses for the next year as a strategy. Because the market is telling me to. I did a couple of $1M houses that sold this year. They had far more showings and were easier to sell than lower priced houses this year. My observation is that the higher end customer is not concerned about making their next home purchase, but lower income ranges have become cautious. I research housing data regularly, and my strategy is based on broader data than just my projects. This is where my haves vs have nots comment came from. My lower priced houses are sitting on the market longer than any time since 2007/2008.
In a strong market cycle, I don't take on custom homes. They take more of my time and take longer to get to a payday. I haven't done a custom in years, but am starting one now over concerns about my typical buyer. I am also doing 1 or 2 very expensive spec houses for same reason.
re: Basic math of Roth vs Traditional many get wrong
Posted by KWL85 on 5/20/26 at 10:00 am to TorchtheFlyingTiger
quote:
quote:
The length of time that earnings can grow is a high criteria in these decisions
Again, this misconception is why I shared the video. Time is a constant in the Roth vs Traditional choice. Length of compounding doesn't change the math (assuming you have same investment duration & growth rate whether you choose to go Roth or Trad).
Eta: of course timeline of withdrawal has effect on complexities such as RMD, widow penalty, inheritance etc
Disagree. Roth gains are tax free. Having more time for gains to grow into larger amounts results in more money that is not taxed. I didn't watch the video, but this is my understanding and logic on why more time for earnings to grow is a consideration for funding a Roth.
re: Retirement at 55 questions
Posted by KWL85 on 5/20/26 at 9:53 am to deuceiswild
quote:
I do not believe that the portion of my 401K that is considered gains gets taxed as such. I believe it is taxed as income regardless. No?
Gains and your contributions are taxed as ordinary income from a traditional 401. Both are tax free in a Roth. Contributions were made with after-tax money at the time of the contribution for Roth.
quote:
Agree. Most know that real estate is local, but the nationwide impact of buyers having tough decisions to leave unusually low mortgage rates with current home in an environment of higher rates and high inflation is affecting many typical buyers. The 10-year is very high with little hope of improvement for the remainder of the year.
The divide between the have and have nots is getting larger. Personally, I am focusing on high end starts as an investor. I am referring to new residential. I am about to start a $1.5M custom. I haven't done a custom in a while, and am only doing it due to concerns about lower end buyers. During good cycles, specs are my preferred route.
Why the downvotes?
re: International F Saliou Niang Verbally Commits To LSU | Seeking Eligibility
Posted by KWL85 on 5/20/26 at 9:12 am to Coastrashtiger
Appreciate the insight you have been sharing. Most of us don't watch much international ball.
quote:
Time to say Schmidt is a bust.
U dumb?
Yes is the answer.
quote:
I was almost down 50% on my portfolio after covid/biden
Nvidia single handedly put me up 50%
If this is true, you need someone else making your investment decisions. Neither should be rue.
Agree with this. The variables make it difficult to have a one size fits all approach. Having diversity in how income is taxed is a good option for the future. The length of time that earnings can grow is a high criteria in these decisions. Most can earn sizeable profits given enough time to earn it. This makes Roth a good option to have for many. Focusing on Roth earlier in one's financial journey and traditional later seems logical. Having both, as well as hsa, is a good model for most.
re: Real estate is correcting
Posted by KWL85 on 5/18/26 at 10:52 am to Billy Blanks
Agree. Most know that real estate is local, but the nationwide impact of buyers having tough decisions to leave unusually low mortgage rates with current home in an environment of higher rates and high inflation is affecting many typical buyers. The 10-year is very high with little hope of improvement for the remainder of the year.
The divide between the have and have nots is getting larger. Personally, I am focusing on high end starts as an investor. I am referring to new residential. I am about to start a $1.5M custom. I haven't done a custom in a while, and am only doing it due to concerns about lower end buyers. During good cycles, specs are my preferred route.
The divide between the have and have nots is getting larger. Personally, I am focusing on high end starts as an investor. I am referring to new residential. I am about to start a $1.5M custom. I haven't done a custom in a while, and am only doing it due to concerns about lower end buyers. During good cycles, specs are my preferred route.
re: Hot take on Jay
Posted by KWL85 on 5/18/26 at 9:42 am to saturncube21
quote:
Jay has always been an offensive-minded coach-he totally relies on his pitching coach for the pitching
Question is-did he make the right hire with Yeskie?
Wrong question. Yeskie's record is very good. He knows how to coach. None of us are happy with this season, but that doesn't mean we should give up on the guys that have brought a lot of success here. They will right the ship.
re: Dear Bitching Fans,
Posted by KWL85 on 5/15/26 at 7:57 am to MorbidTheClown
quote:
Bitching about bitching is still bitching
Does OP have a point? There are 10 other threads worse than this one on the board.
re: Pitching for next season
Posted by KWL85 on 5/15/26 at 7:51 am to In The Know
Baloney. Nobody believes this but you.
re: Reports state that LSU has agreed with G/F Saliou Niang!
Posted by KWL85 on 5/15/26 at 7:48 am to HighRoller
quote:
So you were wrong on your “insider” info and now changing the title?
I believe OP. He seems to be sincere. The deal may not be official yet, but there seems to be legitimate smoke. The title change more accurately describes where we are at with Niang.
re: If your kid is giving a valedictorian speech… tell them to not be poitical
Posted by KWL85 on 5/14/26 at 8:12 am to LSUFanHouston
A valedictorian has earned the right to pick the topic. Maybe it went over your head?
Such a valuable comment. You suck.
quote:
Wonder if it has improved his defense as well.
We aren't happy unless we are hating on our own.
re: Help me pick stocks for my “fun” satellite portfolio
Posted by KWL85 on 5/13/26 at 8:12 am to Bayou_Tiger_225
Goog is getting most of my new money.
Also, thinking of taking a position in Oust. Could be late on this one, but think it has room to keep running.
Sold my position in Wmt a few years ago, but am likely to get back in soon.
Also, thinking of taking a position in Oust. Could be late on this one, but think it has room to keep running.
Sold my position in Wmt a few years ago, but am likely to get back in soon.
Concerning. I make part of my money in new residential housing. I am tweaking my mix to go high end. The divide between the haves/have nots is growing. A $1M house is a safer bet than a $400k one.
Sounds like you are assuming. Hope someone that knows the details comments. I wanted her to stay.
re: French C Brice Dessert to LSU!?!?
Posted by KWL85 on 5/13/26 at 7:42 am to Coastrashtiger
quote:
My dream haul left us Montero and Burks.
Then add Hampton if he reclassifies call it a day and add some grey shirt basically or JUCOs
What happened with the guy you claimed we were getting last week? Are we still in on him?
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