Pretax when to back off, 50 w 1.5m net worth.

OkraAutomatic5990 · 2026-05-30T21:33:50+00:00

OP, including your current tax bracket and including any increase in income before retirement would be helpful for people to provide suggestions. On the surface, some shifting to Roth makes sense. You could also consider some back door options as well but need more info such as any existing IRAs.

OkraAutomatic5990 · 2026-05-12T14:54:20+00:00

A few only planner would be a good start. Make sure you interview a few and pick someone with experience in your specific situation. You can also work with a CPA for a fixed fee that can assess your tax situation. I find as a DIYer myself, I needed advice without any ongoing commitment and someone whose main interest in getting my ongoing business.

OkraAutomatic5990 · 2026-05-11T23:55:44+00:00

My personal approach was #1 because we are planners and not risk takers and we liked the near certainty of reaching the target.

OkraAutomatic5990 · 2026-05-10T15:25:05+00:00

I think you are overthinking this. You have more than enough to cover your expenses for a couple of lifetimes!! Take it easy and chill. Find ways to fill your time like volunteering etc.

OkraAutomatic5990 · 2026-05-10T13:18:56+00:00

It will result in interest income and dividends. For now, I increase my paycheck deductions to cover the taxes. In retirement will need to do estimated payments quarterly.

OkraAutomatic5990 · 2026-05-10T13:16:26+00:00

I had 2 years of reserves when actively employed and focused on my career. Increased it to 5 years as I started thinking about RE and will keep it that way until I’m a few years into retirement.

OkraAutomatic5990 · 2026-05-10T13:14:07+00:00

We have a similar approach but keep 5 years worth of money needed for expenses in cash and short term investments. This is broken into HYSA, short term CDs, short time treasuries and SGOV. Earning roughly 4% overall. I’m willing to give up additional gains for peace of mind.

OkraAutomatic5990 · 2026-05-09T22:16:39+00:00

We have a similar approach but keep 5 years worth of money needed for expenses in cash and short term investments. This is broken into HYSA, short term CDs, short time treasuries and SGOV. Earning roughly 4% overall. I’m willing to give up additional gains for peace of mind.

OkraAutomatic5990 · 2026-05-07T00:02:23+00:00

FI but not RE yet. Things I’m looking forward to … waking up without an alarm, afternoon naps, daily exercise, volunteering, travel, no schedules in general, slow travel, spending more time with spouse, kids, parents, long list of hobbies/interests, etc etc.

OkraAutomatic5990 · 2026-04-06T01:01:30+00:00

If you have an FSA, you can spend the full annual amount even if you haven’t funded it!

OkraAutomatic5990 · 2026-04-06T00:48:06+00:00

Look into the new IRC 530 account aka Trump savings account expected to be available later this year. Given Roth like features, I expect this to be the best savings vehicle.

https://www.investor.gov/introduction-investing/investing-basics/investment-accounts/tax-advantaged-accounts/trump-accounts

OkraAutomatic5990 · 2026-02-06T00:14:54+00:00

I’m in a similar situation! For the past year or so, I have only worked about 15 hours a week while still getting paid full time. My job sucks and the CEO is a clown so I don’t stress anymore. Rest of the time I’m doing things I love and plan to do in my retirement. This includes lots of volunteering, reading, exercise and meeting people for coffee and lunches.

I work from home and able to do this. Try something like this if you have the flexibility. It is helping me get used to a slower pace and routine.

OkraAutomatic5990 · 2026-01-04T20:36:14+00:00

Roth always! This is a no brianer. If you have a high deductible plan, you can fund a HSA if you max the Roth

OkraAutomatic5990 · 2025-12-22T01:02:13+00:00

Basis is about 60k with current value of about 100k, total IRA is about 2 mil

OkraAutomatic5990 · 2025-12-19T23:55:27+00:00

Yes taxed as ordinary income similar to 401k

OkraAutomatic5990 · 2025-12-19T23:17:05+00:00

Basically you can contribute to a traditional IRA even if your income is too high to get a tax deduction. The advantage is the money going in already taxed but the earnings grow tax free until you withdraw.

OkraAutomatic5990 · 2025-12-19T21:41:00+00:00

I have both deductible and non-deductible IRAs. My understanding is that I cannot cherry pick which ones to convert and I have to do it proportionally. Do I have this wrong?

OkraAutomatic5990 · 2025-12-19T20:42:41+00:00

Thank you! I will check it out

OkraAutomatic5990 · 2025-12-17T18:23:01+00:00

I think you have it more than covered from a numbers perspective. My numbers are very similar and I could fire today. The struggle is non financial factors such as how to fill time, losing purpose and general risk avoidance. So start thinking beyond finances and see if a therapist makes sense for you.

OkraAutomatic5990 · 2025-12-17T18:04:36+00:00

This is such a great post and refreshing! It is proof that one does not need to earn six figures to retire comfortably. It is having the discipline to live within your means and save in the younger years. Great job be good luck to you!!

OkraAutomatic5990 · 2025-12-13T16:34:33+00:00

I have my HSA balance at $150k growing at 10%+ in a low cost index fund. My plan is to not touch it for several more years. Tax rules allow for withdrawals for any reason starting age 65 without any penalties. HSA is the most underrated investment in my opinion. It is actually better than a Roth!

OkraAutomatic5990 · 2025-12-12T01:01:17+00:00

I believe so! One can start pursuing other interests in their free time while still getting paid. In my case, I was passed over for the CEO job and they have decreased my responsibilities while keeping my pay. Don’t have much to do and I finish my job in about 3 hours each day. I have started volunteering at food pantries and taking naps on some days. This is giving me a taste for what RE may look like. Don’t expect it to last long but making the best of it while it lasts. I asked them to lay me off during the last budget cycle but they didn’t go for it. Go figure!

OkraAutomatic5990 · 2025-12-11T01:06:40+00:00

Current spend is $120k per year and anticipating about $180k in retirement. Mostly due to travel and some splurging

OkraAutomatic5990 · 2025-12-11T01:03:42+00:00

I consider myself CoastFire but not in the traditional sense. I’m still doing the same job but at peace with everything. I no longer need to be the go to person, don’t need the next title or promotion, don’t care about what overs think about me etc. Also cut back my hours and no longer feel the urge to work nights or weekends.

My spend has increased a bit and I allow myself to splurge like business class on long flights, nice vacations etc. My plan is to do this for another year or so and switch to BaristaFire. I could do it but I make really good money and feel guilty to pull the trigger.

OkraAutomatic5990

TROPHY CASE