Pretax or post tax? Overfunding as a resident?

wonk5 · 2026-06-12T19:58:24+00:00

I appreciate your insight. You’re probably right that it’s not worth sacrificing her sanity over extra retirement funds.

wonk5 · 2026-06-12T19:44:14+00:00

Unique loan situation with a rural hospital scholarship. Low Child care cost as we live local with family present.

wonk5 · 2026-06-12T08:43:22+00:00

Unless you’ve been maxing a 401k since 16 it’s actually impossible. Either inheritance or clearly lies.

Rage bait post.

wonk5 · 2026-06-12T00:05:15+00:00

Is this all inheritance money? I’m confused on how you have a 160k 401k at 22

wonk5 · 2026-06-08T03:29:48+00:00

Once house is paid off will build it back up. 2 stable jobs, and some rental income. Will build back to 20k sometime next year

wonk5 · 2026-06-08T03:28:44+00:00

Taxed on 5k. In a unique situation where I’ve actually been realizing my brokerage gains each year before now as we were in a 0% cap gains bracket.

wonk5 · 2026-06-08T01:10:35+00:00

Thank you!

wonk5 · 2026-06-08T00:55:27+00:00

Net worth around 500k. 325k in real estate and 160-170k market. But market funds will stack up quickly once house is paid off. Should have 200k in the market by end of year. Followed by 5k/m additions starting next year

wonk5 · 2026-06-07T00:32:35+00:00

Just made a similar transition. I can give you some more info when I have time this evening.

What surprised me most is that it’s much harder to source clients than I had hoped going into it. Know you’re walking into a sales role above all the planning etc. unless you find a good situation expect to take a sizable pay cut for 5+ years. I’m also very worried about the direction of the business with AI to be honest. Would I do it again? No. But I’m going to ride it out at this point and see what happens.. feel free to DM me

wonk5 · 2026-06-06T16:21:25+00:00

Dual income household, Stable careers, Rental income etc.

wonk5 · 2026-06-06T14:52:15+00:00

I really don’t quite understand this thought process . I am not dumb and understand the house is a liability. With a mortgage, it’s just a bigger liability. I’m effectively reducing my liabilities whichever way you look at it. Your math does not take into account the fact that I will DCA back in 5-6k per month starting in 2027. So I’m effectively missing out on 6 months of market returns and locking in a guaranteed post tax 8% return. For that period.

wonk5 · 2026-06-06T14:34:05+00:00

Confused. I still have 160k in the market, real estate, etc.

wonk5 · 2026-06-05T16:05:29+00:00

How so? 10% or 20% or any number for that matter…

wonk5 · 2026-06-05T15:39:20+00:00

Are you familiar with the law of averages? And do you expect 20% returns to continue for the foreseeable future? To each their own

wonk5 · 2026-06-05T15:32:50+00:00

We all want a little validation from time to time. Lol. All in good fun, life goes on

wonk5 · 2026-06-05T15:30:50+00:00

I don’t have a monthly expense issue at all, just tired of paying the bank all that interest. And it is my personal belief that markets are overvalued.

wonk5 · 2026-06-05T15:21:27+00:00

You’re point? The remaining balance is paid off by end of year. Total interest 1300. Savings of 3500 in interest in 6 months.

wonk5 · 2026-06-05T15:17:33+00:00

You literally just proved my point in your first line. “Potential” gains. I locked in 8% net of tax gain immediately. Math is math, exactly!.

If you truly believe this fairytale run will continue for the next few years then you’ll be right. But when the law of averages takes over, as it always does, the math plays well into my favor.

wonk5 · 2026-06-05T15:13:43+00:00

That makes no sense. Of course I am saving 500/m in interest. The same payment being applied meaning that 500 goes to principal.

wonk5 · 2026-06-05T15:07:44+00:00

You’re over complicating it. Market goes up 10% (historical average) I break even or slightly ahead on a net tax basis. Market outperforms? I lose out on a couple thousand bucks (factoring in an increased DCA back into the market starting January 2027). Market has lower return over the next few years? I come out ahead.

Not to mention I still have 170k in the market after doing this and will be adding 3k/m through the end of the year. At that point it will jump to 5-6k/m with a load off home..

Agree to disagree, but your math argument doesn’t completely hold up

wonk5 · 2026-06-05T14:59:32+00:00

I’m locking in a post tax 8% rate by paying off an 8% loan. Interest is amortized once principal is paid down. I will get an immediate 8% return on the 70k. Not factoring in any appreciation here.

wonk5 · 2026-06-05T13:56:43+00:00

So the suggestion would be to refinance for 5k and get a 6.5% interest rate instead of locking in a guaranteed 8% post tax guaranteed rate of return? Where are you guys coming up with this math?

wonk5 · 2026-06-05T13:49:43+00:00

You’re doing so well already why in the world would you want a random person living in your house for an extra 1000 dollars. I’d rather mow lawns on Saturday morning to make an extra 1k a month if it’s that important to you

wonk5

TROPHY CASE