Publius,

Consider converting the stocks to cash, leaving them in the Roth, and start
making private loans to real estate rehabbers at say 12-15%, short term
notes with a ist position lien on the property.

Now do the math on the returns.

regards,

Marcus Ferrell
"Publius" <jelgie[at]gmail.com> wrote in message
news:1108410566.215979.24170[at]l41g2000cwc.googlegroups.com...
- quote -

In article <1108505126.611609.312760[at]f14g2000cwb.googlegroups.com> ,
"Publius" <jelgie[at]gmail.com> wrote:

$80k is probably a reasonable retirement income today. It allows you
freedom to travel a bit and live in comfort. Twenty five years from
now, at 3% inflation, you will need $167K. It highly probable that
inflation will average more than 3%.

Dick


- quote -

Objective is retirement at 55 with $80k+ in annual income. Based on
that, I expect that I'd need about $2 MM in assets. I don't expect any
of these assets to be used for anything other than retirement. Does
that help?

The first part of what Richard says makes since. I don't understand
this statement: "It is easy to end up
with all your savings in an IRA and then you are heavily taxed on
retirement." Unless he is talking about after you retire and you roll
your 401(k) into an IRA.

Something else to consider is holding your dividend-paying stocks
(which are usually large-caps) inside the Roth.

JLP

http://AllThingsFinancial.blogspot.com

Richard Cline wrote:

- quote -

Dick,

By this do you mean that the OP's account preferences for high risk
investments should be 1) Roth, 2) taxable, 3) 401(k)? The OP would have
to be really tax efficient in his taxable account to make this true.
Attainable, but difficult.

-Will

In article <TubQd.97$Pz7.30[at]newssvr13.news.prodigy.com> ,
TB <borekfm[at]pacbell.net> wrote:

Growth in the Roth is preferred to growth in the regular IR. For high
risk investments it is better to have the investment in a direct
portfolio. In this way you gain a tax advantage by trading losses
against gains. You have a good start on your IRA. It is easy to end up
with all your savings in an IRA and then you are heavily taxed on
retirement. Long range planning is difficult but essential.

Dick


- quote -

What's your objective?


"Publius" <jelgie[at]gmail.com> wrote in message
news:1108410566.215979.24170[at]l41g2000cwc.googlegroups.com...
- quote -


======================================= MODERATOR'S COMMENT:
Please trim the post to which you are responding. "Trim" means that except for a few lines to add context, the previous post is deleted.

Publius wrote:
- quote -

I think there's a good argument for putting your highest-expected-return
investments in a Roth. The Roth is your only basket of truly tax-free
investment dollars, so you might as well have as much in there as
possible 30 years from now. If investment A is expected to earn a few
percent more per year than investment B, might as well put A in the
account where those gains won't be taxed.

-Tad

Hi there,

I'm in the process of reallocating my retirement assets. Currently, I
have about $100k, with $90k in a 401k and $10k in a Roth IRA.

I am young (30), so I have these assets in fairly aggressive positions
(basically, all equity). Allocation is as follows:

65% large cap
5% mid cap
10% small cap
20% international

I actually am not a total fan of this portfolio and am reallocating
(it's what Morningstar's mpower program gave me). But my question is
not about that so much as it's about how I should split this allocation
up between my 401k and my IRA. Should I position my more aggressive
assets (small cap, mid cap and international) in the Roth? Or is it
better to keep my more conservative large cap stock in this part of my
portfolio?

Thanks in advance,
Publius