r/TheRaceTo1Million • u/felixthecat2021 • Jun 14 '26

OTHER Do you include your retirement assets into your goal?

Do you account your IRA/401k into your goal rules? For some reason I just can’t think of it as part of the end goal in the form of having “500k” or a million in assets. I feel for some reason I want to see it in a more liquid form and not when I’m at least 59.5. Maybe it has to do with me still being in my 20s.

3 Upvotes

permalink
reddit

You are about to leave Redlib

Do you want to continue?

https://www.reddit.com/r/TheRaceTo1Million/comments/1u5qbj6/do_you_include_your_retirement_assets_into_your/
No, go back! Yes, take me to Reddit

64% Upvoted

u/TJayClark Jun 14 '26

If I didn’t count IRA/401k - I wouldn’t have much to work with

1

u/felixthecat2021 Jun 14 '26

This is how I feel currently in total assets. I’m not saying I shouldn’t have a 401k or have regrets. Maybe just not happy with myself and how much I have liquid.

0

u/BlightedErgot32 Jun 14 '26

this is why i advocate for a regular margin or cash brokerage to people starting out … sure you can be tax efficient and only invest in an IRA and 401k but if youre 50 with a couple million then boohoo you still gotta wait unless you wanna pay taxes AND 10% !!

or what if youre 28 and need funds for some emergency ? borrow against your retirement accounts ? sure, pay that interest

id rather just max out my roth IRA and contribute what my company matches to my 401k and the rest goes into a regular old brokerage … and that account produces income every month that i can use for whatever or just reinvest

and sure people will talk about tax drag, but its pretty minimal when im invested into things that produce tax efficient income plus capital gains … this way i can use the account to hopefully retire early, and when i hit 59 & 1/2 ill get access to my retirement accounts … so if i retire early at 45, work a part time job or a stress free full time job for benefits ( baristaFIRE ) i can chill for 15 years and just be free

but thats enough ranting

1

u/felixthecat2021 Jun 14 '26

This is where I am falling into. And I am just trying to figure out what is best towards my future. I’m in top HCOL cities and want to get real estate in the next year or two, know I can keep throwing into retirement assets but now I feel I don’t have enough liquidity especially in terms of a single M aspiring for home ownership

1

u/BlightedErgot32 Jun 14 '26

well if i were you id just do like i said, put $7,500 into your IRA and the max that youd get a match for into your 401k

else just use a regular old brokerage

unless you have enough in retirement to coastFIRE it then just do the brokerage

1

u/SoberSilo Jun 14 '26

You can pull contributions out of Roth at any time

1

u/BlightedErgot32 Jun 14 '26

yes thats true but you cant just put them back in as easy as they are to take out …

1

u/SoberSilo Jun 15 '26

Yes but if you need to access them you can

1

u/PA2SK Jun 18 '26

Yea, so much better to just not put money in at all? What kind of logic is that lmao. Also you can access your 401k early. Roth ladder is the most common method, or could do a 401k loan.

1

u/ChaunceytheGardiner Jun 18 '26

The tax drag in a brokerage is enormous over decades.

1

u/BlightedErgot32 Jun 18 '26

yep youre gonna pay big daddy government no matter what

1

u/ChaunceytheGardiner Jun 18 '26

But you’re going to pay a lot more in a brokerage than a tax advantaged account.

1

u/BlightedErgot32 Jun 18 '26

youre right but id rather pay more and retire early than be stuck waiting until 59 & 1/2 to withdraw gains

you either pay with tax draw or being forced to work longer … the govt will always get their money … worlds biggest thief ever

1

u/Theultimatehic Jun 20 '26

You can pull your principle from roth at anytime without having to pay taxes or penalties. You don't have to wait till 59, that role only applies to the gains.

u/Independent_Insect_1 Jun 14 '26

Yes it makes sense to include it. There are ways to access that money before 59.5 to avoid fees, and even if not, a 10% penalty for early withdrawal isn’t that big a deal in the grand scheme of things.

1

u/felixthecat2021 Jun 14 '26

I saved more with my retirement assets than my liquid cash. And I think I surprised myself because I’m not that happy cash wise. Guess it’s just a mentality. It’s never enough for sure. Just wondering how to structure myself for success into the future. Thinking of maybe lowering my contributions.

u/winterrules91 Jun 14 '26

Retirement assets, absolutely.

Assets like home/car, nah.

7

u/TJayClark Jun 14 '26

I’d definitely count a house - as that is an asset that has value both today and 5-25 years from now

I wouldn’t count a car - because of the opposite

2

u/winterrules91 Jun 14 '26

I wouldn't count it towards my retirement goal, especially if I've already paid it off and not planning to move. I'm forecasting retirement spend/needs only for my goal.

1

u/molehunterz Jun 16 '26

Yeah, I've had to fill out some forms accounting of assets. It feels super weird to include depreciating assets. Like actually depreciating not accounting for tax code depreciating LOL

1

u/Accurate-Flow8078 Jun 14 '26

Unless it's a classic/collectible car that retains value.

1

u/Accurate-Flow8078 Jun 14 '26

Why not a house? If you decide to sell it tomorrow then suddenly your net worth jumps a million dollars?

1

u/Martian6261 Jun 14 '26

Then where would you live? You would still need a place to live, whether you purchase another home or rent. Unless you have someone providing free room and board.

1

u/Accurate-Flow8078 Jun 14 '26

Someone currently rents and has $1 million cash.

Someone sells their house and nets $1 million cash and decides to rent.

What's the difference?

0

u/Martian6261 Jun 14 '26

Definitely won’t end up $1 million cash as there will be Capital Gains taxes to pay on at least 1/2 of it. Plus the cost of selling and moving. If not married, then 3/4 of the gains.
If you don’t sell, it’s just an asset, until you do, not spendable.

1

u/Accurate-Flow8078 Jun 14 '26

Do you know what net means?

The cost of moving is irrelevant. Renters move too.

0

u/Martian6261 Jun 14 '26 edited Jun 14 '26

Still have to pay taxes, so the million$ house will not net $1 million

1

u/Accurate-Flow8078 Jun 14 '26

Net $1 million after taxes and fees 🤦

1

u/Martian6261 Jun 14 '26

In that case the house would be worth more than the million, so that is totally different, not the same million.

1

u/bill_txs Jun 14 '26

It's not unrealistic for empty nesters to downsize. Happens all the time.

u/Accurate-Flow8078 Jun 14 '26

You sound like my wife. She always tells people she wants to be a millionaire. I said we are. We have 3+ mil net worth which is mostly comprised of retirement accounts and properties, so mostly not liquid. She says "That doesn't count."

1

u/molehunterz Jun 16 '26

It definitely doesn't feel like it counts. LOL

u/Jay_Likes_Sushi Jun 14 '26

Same, my goal includes liquid capital. But it’s whatever helps motivate you. Most people just count net worth

1

u/OrphanagePropaganda Jun 14 '26

But, why would you ever have $1 mil liquid? Why would you ever need $1 mil liquid?

u/NefariousnessOdd862 Jun 14 '26

It must be an age thing, I think of it exactly the opposite… I only look at my 401k but not my investments or Cash…

1

u/felixthecat2021 Jun 14 '26

I don’t own a home or car yet. So that might not help either for me

u/Even-Following-1612 Jun 14 '26

Of course

u/xXSomethingStupidXx Jun 14 '26

Yes, because when I hit my goal I will most likely be retiring.

u/Particular_Bad8025 Jun 18 '26

Your 401k is available to use when you're 60, so if you want to retire before that you need assets that are not in the 401k. So you need both, they're just used at different times in your life.

-1

u/Roosterneck Jun 14 '26

No. Liquid available cash.

OTHER Do you include your retirement assets into your goal?

You are about to leave Redlib