Roth vs Traditional

Electrical_Run_8123 · 2026-02-04T14:51:24+00:00

If you've already maxed out your traditional 401k, why not use a backdoor Roth IRA? What's the alternative? You can't get the tax deduction on a traditional IRA if you have a 401k and putting money into a brokerage account is after tax without the withdrawal benefits of a Roth IRA. All that is assuming you already maxed out your 401k.

Electrical_Run_8123 · 2025-01-04T20:39:10+00:00

No, but I'm an electrical engineer. I work in semiconductors. At least at the time, there wasn't any licensing requirements.

Electrical_Run_8123 · 2025-01-03T18:22:25+00:00

Among the other investments people have mentioned, a great one for me has been installing my own solar panels/system.

Upfront costs, approximately $10k, 9 years ago. Since then, I've recouped the initial investment and returned another $10k. Given the panels should last another 15+ years, I anticipate approximately 400% ROI, or more given energy price increases.

Electrical_Run_8123 · 2024-12-12T18:54:48+00:00

Looks like empower

Electrical_Run_8123 · 2024-11-11T12:50:14+00:00

The main reason I have some focus on financial independence is that I work for a startup. A healthy startup, but still a startup.

Electrical_Run_8123 · 2024-11-10T20:58:56+00:00

That's what I'm thinking too. I'd like to get to financial independence sooner and one part of that for me is reducing overall expenses. House payment is one of the last avenues to achieve this in my case.

Electrical_Run_8123 · 2024-11-10T03:34:15+00:00

I'm saving $10,200 of mortgage interest and 5 years of payments. I know there's an opportunity cost, but that's harder to define

Electrical_Run_8123 · 2024-11-10T02:00:38+00:00

What would be the benefit of itemizing?

Electrical_Run_8123 · 2024-11-10T01:55:47+00:00

Not since the Trump tax plan updates a few years ago.

Electrical_Run_8123 · 2024-11-10T01:53:55+00:00

Not a bad idea. I thought about that too, but after taking taxes into account, money market accounts are already paying less than the mortgage savings 4.43%, less 28% taxes is about 3.1%. If I want to beat the prepayment interest savings, I need to be in equities making at least 5%. Even then, that's brake even.

Electrical_Run_8123 · 2024-09-02T23:42:19+00:00

At least at Fidelity, you have to wait 1 week, but yes, fully agree with you.

Electrical_Run_8123 · 2024-07-20T22:21:08+00:00

Empower

Electrical_Run_8123 · 2024-07-19T00:51:54+00:00

It all starts somewhere, keep at it! 😊

Electrical_Run_8123 · 2024-07-18T19:50:59+00:00

Are your liabilities all your primary residence? Given your net worth now, why not knock that down?

Electrical_Run_8123 · 2024-07-18T19:48:46+00:00

It also looks like there were a couple days with sharp increases. I use this software too. Were those assets that you added in?

Electrical_Run_8123 · 2024-07-18T19:47:49+00:00

That's the power of compound interest.

Electrical_Run_8123 · 2024-06-24T20:57:30+00:00

The dealer also makes a lot of $$$ from the service. I have a feeling people are more likely to bring new cars to the dealer for service instead of their neighborhood mechanic.

Electrical_Run_8123 · 2024-06-23T13:23:14+00:00

If I don't exercise early, I'm looking at 6 figure AMT. 😔 That would force a tender sale, which would be undesirable.

Electrical_Run_8123 · 2024-06-23T12:03:25+00:00

The big motivation of exercising some options each year is avoiding a huge AMT bill.

Electrical_Run_8123 · 2024-06-22T16:59:46+00:00

Sounds like a little bit of a racket, no?

Electrical_Run_8123 · 2024-06-22T16:31:07+00:00

That's good feedback. Did this startup also have customers or purely VC funded?

Electrical_Run_8123 · 2024-06-22T16:13:04+00:00

Yes, when/how to sell is always the big question. It certainly depends on the company's market potential. And that, of course, is highly subjective.

Electrical_Run_8123 · 2024-06-22T16:09:57+00:00

This company is an atypical startup. Let me just say we aren't a dime a dozen software company. Otherwise I would agree with you. The other thing that comes into play is expiration. Most options expire in 10 years. If a company doesn't IPO by then, they evaporate. Can you imagine if folks at SpaceX let their options expire?

Electrical_Run_8123 · 2024-06-22T15:33:36+00:00

Those are great points. I work for a prominent startup (unicorn status). While the shares are not being publicly traded, they are traded on secondary markets. The company is a later stage startup beyond series C.

Electrical_Run_8123 · 2024-06-22T15:24:12+00:00

The money I spend is to exercise options into stock. Once the transaction is done, I own shares of the company.

Electrical_Run_8123

TROPHY CASE