Newbie question

[buckint]

Where do I put my general savings? This is money that I have already paid taxes on and is not in any retirement acct.
Should it go into Tax Free Portfolio Value?

Thanks

[jimr]

What you describe would probably go in the taxable portfolio.

The "taxable" name means that you have to pay taxes each year on any investment earnings from the portfolio (at the investment tax rate). However, this means that the basis of the portfolio is kept at 100% (eg all growth is taxed each year), so no taxes are due on withdrawals from the taxable portfolio.

The tax deferred portfolio is intended to represent something like a 401k or traditional IRA where taxes on portfolio growth are deferred each year, but taxes are due when you withdraw from the portfolio (at the income tax rate). The model assumes that the tax basis of the tax deferred portfolio is 0%, therefore all withdrawals from this portfolio are taxed in full at the income tax rate.

The tax free portfolio is intended to represent something like a ROTH IRA where portfolio growth isn't taxed and withdrawals can be made form the portfolio without any taxes due.