Quick Stats:
Age: 31, Married, 1 Child
Full Time Income: $90K
Side Work / LLC Income: $85K
Wife's Part Time Income: $20K
Cash Savings: $41K
Child's 529: $2500
My 401K: $30K
Traditional IRA: $41K
Roth IRA: $15K
Wife's 403B: $16K
Mortgage: $130K @ 5.5% (Value of home: $200K)
I want to invest 15% of my full time income (minus the LLC work) to retirement. Right now I only contribute 6% to my 401(K) in order to meet the employer match benefits.
Should I open an SEP account to lower my tax bill? Would I have the same tax effect by simply putting the money in my traditional IRA or be better off throwing into a ROTH or my employers 401K instead? My future income will not likely be $175K a year (Hope it is!) but it could easily be knocked down to $90K or so.
I am very interested in potential passive income through money investments and early retirement. Your advice is greatly valued.
Age: 31, Married, 1 Child
Full Time Income: $90K
Side Work / LLC Income: $85K
Wife's Part Time Income: $20K
Cash Savings: $41K
Child's 529: $2500
My 401K: $30K
Traditional IRA: $41K
Roth IRA: $15K
Wife's 403B: $16K
Mortgage: $130K @ 5.5% (Value of home: $200K)
I want to invest 15% of my full time income (minus the LLC work) to retirement. Right now I only contribute 6% to my 401(K) in order to meet the employer match benefits.
Should I open an SEP account to lower my tax bill? Would I have the same tax effect by simply putting the money in my traditional IRA or be better off throwing into a ROTH or my employers 401K instead? My future income will not likely be $175K a year (Hope it is!) but it could easily be knocked down to $90K or so.
I am very interested in potential passive income through money investments and early retirement. Your advice is greatly valued.