Limiting tax-deferred savings

Other discussions not related to the Permanent Portfolio

Moderator: Global Moderator

Post Reply
Kbg
Executive Member
Executive Member
Posts: 2815
Joined: Fri May 23, 2014 4:18 pm

Re: Limiting tax-deferred savings

Post by Kbg » Thu Jan 10, 2019 9:26 am

barrett wrote:
Thu Jan 10, 2019 8:17 am
Kbg wrote:
Thu Jan 10, 2019 7:36 am
What is this I-ORP you speak of and where can I find it?
Tis here, young Kbg:

https://www.i-orp.com/CashAcc/extended.html

Takes a bit to get a handle on it but it's a great tool. Enter all amounts as thousands (so $20,000 would just be 20). Don't use any commas with your dollar amounts or you will get an error message.

May your numbers be most great!
Thanks!
WiseOne
Executive Member
Executive Member
Posts: 2692
Joined: Wed Feb 16, 2022 11:08 am

Re: Limiting tax-deferred savings

Post by WiseOne » Fri Jan 11, 2019 8:12 am

OK, so I tried running iORP with varying limits on 401K contributions. Interestingly, the numbers for annual income & final balance did not budge until I set current tax bracket to 32% and compared zero contributions to max contributions. Then I got a very slight change of $1000/year income less with zero contributions.

Either there's something wrong with iORP's calculator, or it truly doesn't matter. Food for thought, because there are definite advantages to having more control over your investments. Not changing anything now though.
stuper1
Executive Member
Executive Member
Posts: 1365
Joined: Sun Mar 03, 2013 7:18 pm

Re: Limiting tax-deferred savings

Post by stuper1 » Fri Jan 11, 2019 10:37 am

If iORP isn't showing a change there then doesn't that basically mean that it estimates you will be in the same marginal tax bracket in retirement as you are now? And if that is the case, then truly it doesn't matter which way you go. Unless I'm misunderstanding, which is very possible. I'm no expert on this stuff.
Post Reply