K****D
发帖数: 30533 | 1 that 30-year 401(k) beats all kinds of taxable account, if the
yields are the same.
That is, no matter:
1) you trades daily or never trade in your taxable account;
2) How much dividend you get each year. (lower dividends are
slight better for taxable account, but can't make up the gap.)
As long as you get the same APY in your 401(k) and taxable account,
401(k) always beats taxable account 30 years later, even if your
tax rate is slightly higher 30-years later.
This conclusion is so disappointing |
K****D
发帖数: 30533 | 2 oh, forgot to mention one big assumption: APY is around 8%,
dividend included.
【在 K****D 的大作中提到】
: that 30-year 401(k) beats all kinds of taxable account, if the
: yields are the same.
: That is, no matter:
: 1) you trades daily or never trade in your taxable account;
: 2) How much dividend you get each year. (lower dividends are
: slight better for taxable account, but can't make up the gap.)
: As long as you get the same APY in your 401(k) and taxable account,
: 401(k) always beats taxable account 30 years later, even if your
: tax rate is slightly higher 30-years later.
: This conclusion is so disappointing
|
K****D
发帖数: 30533 | 3 actually I just recalculated, it doesn't even matter what APY
it is! ft!
【在 K****D 的大作中提到】
: oh, forgot to mention one big assumption: APY is around 8%,
: dividend included.
|
S**C
发帖数: 2964 | 4 You forget one thing which could cheer you up a little bit.
When you need the money after your retirement, your 401(k) withdraw will be
counted as ordinary income, while your taxable account withdraw may well be
long-term capital gain or qualified dividend.
【在 K****D 的大作中提到】
: that 30-year 401(k) beats all kinds of taxable account, if the
: yields are the same.
: That is, no matter:
: 1) you trades daily or never trade in your taxable account;
: 2) How much dividend you get each year. (lower dividends are
: slight better for taxable account, but can't make up the gap.)
: As long as you get the same APY in your 401(k) and taxable account,
: 401(k) always beats taxable account 30 years later, even if your
: tax rate is slightly higher 30-years later.
: This conclusion is so disappointing
|
K****D
发帖数: 30533 | 5 That's already taken into consideration.
be
be
【在 S**C 的大作中提到】
: You forget one thing which could cheer you up a little bit.
: When you need the money after your retirement, your 401(k) withdraw will be
: counted as ordinary income, while your taxable account withdraw may well be
: long-term capital gain or qualified dividend.
|
m**********r
发帖数: 887 | 6 did you count in that only the profit part of taxalbe account is taxed? |
K****D
发帖数: 30533 | 7 Yes, I did.
Continue to be bug free, :-)
【在 m**********r 的大作中提到】
: did you count in that only the profit part of taxalbe account is taxed?
|
m**********r
发帖数: 887 | 8 so if APY is 0, how can 401k beat taxable account? |
K****D
发帖数: 30533 | 9 Of course APY has to be > 0 ah, hehe.
I tried 2% - 8%, with different gain/dividend (gain + dividend
= APY) combination. Same conclusion.
【在 m**********r 的大作中提到】
: so if APY is 0, how can 401k beat taxable account?
|
K****D
发帖数: 30533 | 10 If this conclusion is true, it means for 401(k) haters,
they need to set a goal of beating S&P by around 0.7% each
year in their taxable account in order to make even.*
*: Using 5% gain + 3% dividend assumption. Also assume same
tax bracket when retiring.
【在 K****D 的大作中提到】
: that 30-year 401(k) beats all kinds of taxable account, if the
: yields are the same.
: That is, no matter:
: 1) you trades daily or never trade in your taxable account;
: 2) How much dividend you get each year. (lower dividends are
: slight better for taxable account, but can't make up the gap.)
: As long as you get the same APY in your 401(k) and taxable account,
: 401(k) always beats taxable account 30 years later, even if your
: tax rate is slightly higher 30-years later.
: This conclusion is so disappointing
|
|
|
P********e
发帖数: 2610 | 11 how about fees
【在 K****D 的大作中提到】
: That's already taken into consideration.
:
: be
: be
|
K****D
发帖数: 30533 | 12 No fee is considered. On average, 401(k) has lower fee than
taxable account bah.
【在 P********e 的大作中提到】
: how about fees
|
s*******d
发帖数: 126 | 13 I suppose that this is a possibility if the 401k plan offers only crappy
managed funds that charge 1+% fees. Then maybe a low cost index fund even in
a taxable account could do better. This is not a likely scnerio though.
I like 401(k) because of the tax deferred advantage that it has. Think of it
this way, the government clearly knows about this advantage, otherwise,
they would not have set a mandate distribution age, at 70 1/2, to
essentially tell the tax payer that "the free ride is over and
【在 K****D 的大作中提到】
: If this conclusion is true, it means for 401(k) haters,
: they need to set a goal of beating S&P by around 0.7% each
: year in their taxable account in order to make even.*
: *: Using 5% gain + 3% dividend assumption. Also assume same
: tax bracket when retiring.
|
m**********r
发帖数: 887 | 14 考虑一下计算方法的问题，以25％税率为例，税后的7500刀相当于睡前的10000刀
如果采用这两个数值为起始点计算普通帐户和401k帐户的话，差异就更明显了。 |
K****D
发帖数: 30533 | 15 Already taken into consideration.
【在 m**********r 的大作中提到】
: 考虑一下计算方法的问题，以25％税率为例，税后的7500刀相当于睡前的10000刀
: 如果采用这两个数值为起始点计算普通帐户和401k帐户的话，差异就更明显了。
|
m**********r
发帖数: 887 | |
m**********r
发帖数: 887 | |
m**********r
发帖数: 887 | 18 那你有没有考虑到有的人401K放满了而无法再投？ |
s*******d
发帖数: 126 | 19 how would this change comparison between 401(k) investement and taxable accounts returns?
【在 m**********r 的大作中提到】
: 那你有没有考虑到有的人401K放满了而无法再投？
|
p***n
发帖数: 635 | 20 怎么,难道你FOUND OUT之前不是这样的么?
【在 K****D 的大作中提到】
: that 30-year 401(k) beats all kinds of taxable account, if the
: yields are the same.
: That is, no matter:
: 1) you trades daily or never trade in your taxable account;
: 2) How much dividend you get each year. (lower dividends are
: slight better for taxable account, but can't make up the gap.)
: As long as you get the same APY in your 401(k) and taxable account,
: 401(k) always beats taxable account 30 years later, even if your
: tax rate is slightly higher 30-years later.
: This conclusion is so disappointing
|
m**********r
发帖数: 887 | 21 我的意思是肯迪的计算只能在一个范围内为真。
accounts returns?
【在 s*******d 的大作中提到】
: how would this change comparison between 401(k) investement and taxable accounts returns?
|
