jIMOh
Thinks s/he gets paid by the post
I just changed jobs and have some issues I have not dealt with before. Bear with long winded post
I have a large 401k rollover going to my existing Roth and Rollover at etrade, by time transaction closes, account should be $260k which is most of my retirement balance.
My old job had a 9% match on 401k (90% of first 5%, plus another 4.5% fixed contribution).
My new job matches 50% of first 6%, the base they are matching is considerably larger, but losing that 9% match is part of reason for the post.
My new salary is significantly higher, and I can invest enough to make up for the match I am missing, I am trying to determine how much that is (easy math), and should this go to a taxable account (I am 49, I am leaning this way) or a non deductible IRA (what are the pros of commingling the existing rollover with after tax money?)
My math to FI looks like this
I think I will have $375k in 2025, which would be $750k in 2032, which is $1.5M in 2039 and therefore FI in 2039 at age of 66. Catch up contributions could accelerate this, 2039 is how I see my worst case (17 years from now). $60k income is enough for me to retire on.
Over next 17 years, I am thinking taking a portion of my raise and investing it in a taxable S&P 500 index fund (at etrade). It would be my initial taxable investment account.
My asks
check (and question) my math
if you moved from a job with a high match to an average match, what did you do?
if you had to look at problem as 9% of x to 3% of y, how do you allocate (y-x) with respect to investing?
I have a large 401k rollover going to my existing Roth and Rollover at etrade, by time transaction closes, account should be $260k which is most of my retirement balance.
My old job had a 9% match on 401k (90% of first 5%, plus another 4.5% fixed contribution).
My new job matches 50% of first 6%, the base they are matching is considerably larger, but losing that 9% match is part of reason for the post.
My new salary is significantly higher, and I can invest enough to make up for the match I am missing, I am trying to determine how much that is (easy math), and should this go to a taxable account (I am 49, I am leaning this way) or a non deductible IRA (what are the pros of commingling the existing rollover with after tax money?)
My math to FI looks like this
I think I will have $375k in 2025, which would be $750k in 2032, which is $1.5M in 2039 and therefore FI in 2039 at age of 66. Catch up contributions could accelerate this, 2039 is how I see my worst case (17 years from now). $60k income is enough for me to retire on.
Over next 17 years, I am thinking taking a portion of my raise and investing it in a taxable S&P 500 index fund (at etrade). It would be my initial taxable investment account.
My asks
check (and question) my math
if you moved from a job with a high match to an average match, what did you do?
if you had to look at problem as 9% of x to 3% of y, how do you allocate (y-x) with respect to investing?