What's Next?

[treeofpain]

I am 54, have $500k in retirement accounts, and have no debt. Kids' college is covered and we pay cash for everything. We keep $25k in an emergency fund. Gross income is $125k and we live on about $50k/year.


I am maxing out 403b (the non-profit version of 401k) and Roth IRAs. Are there any other "no brainer" ways to save for retirement, or do I just crank up a taxable account?


Thanks to everyone here for this forum. I have learned a lot!

 

[Scuba]

I recommend a taxable account. More flexibility and tax diversity in retirement.

 

[pb4uski]

+1 added plus is once you retire your income will likely be in the 12% tax bracket and qualified dividends and LTCG are tax free... so invest in equities in your taxable account.... especially once you are retired... perhaps muni funds until then.

 

[bada bing]

I am on the last year or two of working with similar income and expenses. A few
things I'm doing above max'ing my 401K and Roth are:

HSA contributions
"Mega-backdoor Roth" conversions within my employer's 401k
Opening a solo-401K to shelter a little income from a self-employed side hustle.

There are eligibility restrictions on all of those however.
The HSA requires using a high deductible health plan for health insurance
The mega-backdoor requires an employer plan that allows after-tax contributions and
in-plan withdrawals or conversions
A solo-401K requires having qualifying self-employment income.

 

[Lawrencewendall]

Taxable account with federally tax free holdings (K-1) that pay dividends which are re-invested.

 

[cooch96]

I think the gentlemen above covered all the bases.

Is there any passion you can pursue that could both enrich your life and possibly break even financially? I have a carpenter friend who loves photography. He sells enough pictures most months to fund his brewing hobby.
Do you play a reasonably sized instrument? Instead of practicing in your house you could try busking when the westher is nice.

 

[treeofpain]

We have hobbies and are generous to charities we believe in. I enjoy my job, and there is some financial upside, so I am just trying to understand investment options as my income increases.

 

[pb4uski]

..... The HSA requires using a high deductible health plan for health insurance ...

Policy has to e HSA eligible.... not all high-deductible policies qualify (I've had both).

 

[treeofpain]

I have conventional health insurance through work. Guessing I am not eligble for HSA?

 

[karen1972]

I have conventional health insurance through work. Guessing I am not eligble for HSA?

Many employers offer HSA eligible plans, some don't. Typically you pick a plan every year so something to look into when your insurance renews.