recursion49
Dryer sheet aficionado
- Joined
- Jul 19, 2012
- Messages
- 28
Hi everyone!
I'm a new member to this forum, who's taken an interest in retiring early. I am 23 years old this year, and hoping to retire between 45-55. I've just started work at a major corporation as a financial analyst, and have been offered numerous options for long-term savings. Since the system is as complex as it is, I was hoping for some advice from the more experienced people of this board, to guide me towards my goals.
Marital status: Single
Current income: $50,000/annual
Employee stock purchase plan: 15% discount below price at enrollment start and end date, whichever is lower.
Others: 401(k) and Roth 401(k), open to starting an IRA or Roth IRA.
Current actions: 10% ESPP, 6% 401(k), 6% Roth 401(k), 4.5% employer match for 401(k)
Situation: Managed to complete college debt-free, and just started career.
I understand that a Roth 401(k) makes more sense for people who expect to pay higher taxes in the future. However, if the best case scenario - that I retire before 55 - pans out, then I should be in a relatively low tax bracket later on. Therefore, should I just focus on the traditional 401(k)?
Also, are there any other suggestions for improving my chances of early retirement? I read plenty about Roth conversions and the like, but it all seems rather risky, especially when done incorrectly. There's also a lot of advice about maxing out on 401k and IRA plans, but I can't decide on how much would actually save.
Any help would be greatly appreciated!
I'm a new member to this forum, who's taken an interest in retiring early. I am 23 years old this year, and hoping to retire between 45-55. I've just started work at a major corporation as a financial analyst, and have been offered numerous options for long-term savings. Since the system is as complex as it is, I was hoping for some advice from the more experienced people of this board, to guide me towards my goals.
Marital status: Single
Current income: $50,000/annual
Employee stock purchase plan: 15% discount below price at enrollment start and end date, whichever is lower.
Others: 401(k) and Roth 401(k), open to starting an IRA or Roth IRA.
Current actions: 10% ESPP, 6% 401(k), 6% Roth 401(k), 4.5% employer match for 401(k)
Situation: Managed to complete college debt-free, and just started career.
I understand that a Roth 401(k) makes more sense for people who expect to pay higher taxes in the future. However, if the best case scenario - that I retire before 55 - pans out, then I should be in a relatively low tax bracket later on. Therefore, should I just focus on the traditional 401(k)?
Also, are there any other suggestions for improving my chances of early retirement? I read plenty about Roth conversions and the like, but it all seems rather risky, especially when done incorrectly. There's also a lot of advice about maxing out on 401k and IRA plans, but I can't decide on how much would actually save.
Any help would be greatly appreciated!