I have roughly two years left before I separate from the Air Force. I'm trying to plan this out as best as possible. With a recent raise, my wife and I are able to finally start socking away a decent amount of money each month.
I'd love to start getting money in a Roth as soon as possible to maximize the amount we have in this tax shelter for further down the line. On the other hand I know we need to save as much as possible over the next 24 months because I am essentially guaranteeing unemployment for at least a short period of time (plan for the worst hope for the best).
Since what we will save before separation won't accrue much interest in such a small period of time and you can always take out principle from a Roth without penalty, I'm leaning toward putting all savings (up to yearly max) in a Roth. If we need some of it due to extended unemployment, it's there. If not, bonus! We will already have a bunch of extra cash in a Roth.
Thoughts?
I'd love to start getting money in a Roth as soon as possible to maximize the amount we have in this tax shelter for further down the line. On the other hand I know we need to save as much as possible over the next 24 months because I am essentially guaranteeing unemployment for at least a short period of time (plan for the worst hope for the best).
Since what we will save before separation won't accrue much interest in such a small period of time and you can always take out principle from a Roth without penalty, I'm leaning toward putting all savings (up to yearly max) in a Roth. If we need some of it due to extended unemployment, it's there. If not, bonus! We will already have a bunch of extra cash in a Roth.
Thoughts?