I'm 27 (28 in a couple days!) and my wife is 28. Here are the stats:
Current Investments:
Me:
401K = $7,700
Roth 401K = $800
Roth IRA = $2,400
IRA = $41,000
Total Taxable = $48,700
Total Tax Free = $3,200
Wife:
IRA = $7,200
403(b) = $3,000
Total Taxable = $10,200
No consumer debt, thank goodness.... Less than $3,000 left on my student loan, at 3.125%. We have 3 months of savings and are currently saving for a down payment, closing costs, etc. for a house. No car payments or any other loans.
Current Income:
Me = $72,000/yr including bonus. Should get 5-6% raise, maybe more with an expected promotion next year.
Wife = $39,000/yr, but going to $47,500 in Sept. and $52,000 at the first of the year with promotion already in hand. Should get 5-6% raise going forward.
Currently saving:
Me:
Roth 401K = 5%
401K = 5% + 4% company match
Wife:
403(b) = 10% and her waiting period will be over this winter and the company will then contribute 12%/yr for a total next year of 22%/yr.
So, now that you know way more than I ever thought I'd divulge on the internet, my question is this: With a goal to FIRE off hopefully at 50 or so, if not sooner, what should my goals be going forward? One question is if we retire well before the 59.5 years of age, how do you tap your taxable accounts? We live in Washington and do not have state income tax, but due to our income level and lack of house for tax break our taxes are large. I'm trying to split our investments going forward to pay some taxes now, some deferred, etc. but I'm not sure how to best do this. Should I max the 401K first? Or just contribute to get full match, then go to the Roth IRA and/or Roth 401K. Also, I'm considering opening up a regular account with Fidelity (where our IRA's, etc. are at). Should I try and do minimum 401K to get match and another 5K to Roth IRA and 5K to a regular account?
I know, lot's of info and lot's of questions but I figured I'd hit the ground running with post #1. Thanks for any help and/or suggestions.
Current Investments:
Me:
401K = $7,700
Roth 401K = $800
Roth IRA = $2,400
IRA = $41,000
Total Taxable = $48,700
Total Tax Free = $3,200
Wife:
IRA = $7,200
403(b) = $3,000
Total Taxable = $10,200
No consumer debt, thank goodness.... Less than $3,000 left on my student loan, at 3.125%. We have 3 months of savings and are currently saving for a down payment, closing costs, etc. for a house. No car payments or any other loans.
Current Income:
Me = $72,000/yr including bonus. Should get 5-6% raise, maybe more with an expected promotion next year.
Wife = $39,000/yr, but going to $47,500 in Sept. and $52,000 at the first of the year with promotion already in hand. Should get 5-6% raise going forward.
Currently saving:
Me:
Roth 401K = 5%
401K = 5% + 4% company match
Wife:
403(b) = 10% and her waiting period will be over this winter and the company will then contribute 12%/yr for a total next year of 22%/yr.
So, now that you know way more than I ever thought I'd divulge on the internet, my question is this: With a goal to FIRE off hopefully at 50 or so, if not sooner, what should my goals be going forward? One question is if we retire well before the 59.5 years of age, how do you tap your taxable accounts? We live in Washington and do not have state income tax, but due to our income level and lack of house for tax break our taxes are large. I'm trying to split our investments going forward to pay some taxes now, some deferred, etc. but I'm not sure how to best do this. Should I max the 401K first? Or just contribute to get full match, then go to the Roth IRA and/or Roth 401K. Also, I'm considering opening up a regular account with Fidelity (where our IRA's, etc. are at). Should I try and do minimum 401K to get match and another 5K to Roth IRA and 5K to a regular account?
I know, lot's of info and lot's of questions but I figured I'd hit the ground running with post #1. Thanks for any help and/or suggestions.