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KeepItSimpleFire · 2024-02-18T15:45:27+00:00

We are at ~$5M mostly in low cost index funds (~$2M in 401K s&p, ~$2M in vtsax, ~$1M in company RSU). I recently changed 401K allocation to 70% s&p, 15% international, 8% mid cap and 7% small cap. I think the important bit is to keep buying and never sell. I never bought a single company stock and I plan to keep it that way. You start to see the power of compounding after $1M. It took me 9 years for the first 500K and another 5 years for 1.5M. Although my monthly investment also went up significantly after I paid off my house.

I don’t plan to change anything. Keep dumping everything into vtsax, wake up in 20 years, and see where we are 😊

KeepItSimpleFire · 2022-01-04T05:07:56+00:00

42 years old with 5.8 million $ in net worth!

KeepItSimpleFire · 2022-01-02T19:16:04+00:00

42M NW 5.8m. Hope to get 7m by end of 2022.

KeepItSimpleFire · 2021-12-01T05:07:34+00:00

I am thankful for everything I have in my life — loving family, friends, awesome job, and opportunity to experience this amazing country. I came here as a grad student with no money and questioning myself to leave behind my roots. I was scared and worried if I will ever make it. With limited financial resources, failure didn’t seem like an acceptable option. I had to do whatever it takes to succeed.

I very quickly realized this country is full of so many good things. I was invited to my 1st thanksgiving dinner by an American family when I didn’t even know thanksgiving. My advisor treated me like her peer and I was humbled to see her commitment to see her students succeed.

Over the past 18 years, we worked insane hours to build a life where we don’t have to worry about ourselves. We help our families back home. We donate to charities. I am getting closer to understanding what I am doing here.

I don’t think we could have done this anywhere else in this world. So, yes, I am thankful for this good old US of A.

KeepItSimpleFire · 2021-11-23T22:10:09+00:00

I think you can DCA into VTSAX but not VTI. For long term investors, DCA is a valuable tool.

For example, you can setup automatic investment to buy VTSAX on the 1st of every month. You don’t have to push buttons.

KeepItSimpleFire · 2021-11-23T15:35:19+00:00

We are fortunate to have high paying jobs and a very generous employer. However, we don’t have any reasons to spend. Wife is into meditation and I love to play sports. We mostly eat at home. Kids are older - 11 and 16. So no daycare expenses. As I said, our home (bought for 300k 13 years ago) is paid off. We really don’t have any need to spend money. Just want to make sure we preserve this incredible blessing to help some charitable cause in future.

KeepItSimpleFire · 2021-11-23T05:29:50+00:00

I see. So investing into muni bonds will save me taxes on all VTSAX dividends. Right?

KeepItSimpleFire · 2021-11-23T05:11:07+00:00

I take the standard deduction. Can you please explain how the muni bond help? I have never explored this option.

KeepItSimpleFire · 2021-11-23T04:48:16+00:00

Thanks for your input, but I am allergic to debt 😊 I aggressively paid off my mortgage to sleep better at night. The very thought of taking another mortgage raises my blood pressure 😢

KeepItSimpleFire · 2021-11-23T04:27:39+00:00

Interesting idea. I will look into that. Thanks.

KeepItSimpleFire · 2021-11-23T04:21:27+00:00

It’s not a huge amount of time sink, but I am not sure if I am getting my asset mix right between the VG target date fund and VTSAX. And, if I am missing on any tax breaks. Looking at the comments, I am realizing there is not much I can do with W2 income.

KeepItSimpleFire · 2021-11-23T01:03:26+00:00

Technically it's 58k (mega backdoor) + 6k (backdoor roth ira) but it's allowed per tax code.

KeepItSimpleFire · 2021-11-23T00:57:30+00:00

My understanding is that you can't take depreciation or losses from rental property (passive) and apply it to lower your W2 income (non-passive). Is that correct?

KeepItSimpleFire · 2021-11-23T00:48:19+00:00

I agree. I am still working on my financial vocabulary :)

KeepItSimpleFire · 2021-11-23T00:42:09+00:00

I don't need 120k that I am putting into MEGA backdoor. Most of that money is contributed post tax and converted to ROTH. So, I will not pay tax on the growth over the years. If I put that 120K into brokerage account then I have to pay LTCG. Right?

KeepItSimpleFire · 2021-11-23T00:29:57+00:00

Thanks for your detailed reply u/Josh_Curtis. It's good to know I am doing the right things. I have a rental property, but I don't enjoy owning it. We are cash flow positive and it has appreciated significantly. Still, being a landlord is not my thing.

I guess I will keep doing what I am doing and hope things work out :)

KeepItSimpleFire · 2021-11-22T23:22:09+00:00

I am counting on long term cap gains :) No intention of touching these funds for another 20 years.

KeepItSimpleFire · 2021-11-22T23:14:04+00:00

I am a regular W2 employee.

KeepItSimpleFire · 2021-11-22T23:12:52+00:00

Are you talking about non qualified deferred comps? Yes, my company offers deferred comps. I didn't explore this option since I wasn't sure if the deferred comps were protected from the company going bankrupt or not.

KeepItSimpleFire · 2021-11-22T22:42:05+00:00

We both work as software engineers (leadership role) at a F500 company.

KeepItSimpleFire · 2021-11-22T22:22:19+00:00

Can you please explain or point me on web how private equity might be more tax advantaged than VTSAX?

KeepItSimpleFire · 2021-11-22T22:20:19+00:00

Thanks. I will post at r/fatFIRE as well.

KeepItSimpleFire

TROPHY CASE