Hello all,
I'm a long-time lurker who has finally decided to post on the eve of my 40th b-day. I have learned a lot here both from the old-timers and the young people who thought about this way earlier than I did. Thank you.
My question revolves around 401k/IRA savings vs. after-tax savings. The conventional wisdom for people still working seems to be to max out 401k + Roth IRA before even thinking about any after-tax accounts. I can see this as fine for people who intend to work until at least 55. But I am aiming to hang it up (at least semi...) around 47 or 48, and I'm in much better shape right now in 401k (around $250k) than I am in taxable accounts (around $30k).
Currently I'm just putting just enough in 401k to get the full benefit of company match, and DCAing what I can every month (typically $1000/mo right now) in after-tax accounts. No Roth IRA yet. I'd like to hear some comments about whether this basic approach is good/bad/average/idiocy. (What other options would there be when the time comes if I go all tax-deferred? Start SEPP? Accept penalty tax?)
Any comments are appreciated.
G.
I'm a long-time lurker who has finally decided to post on the eve of my 40th b-day. I have learned a lot here both from the old-timers and the young people who thought about this way earlier than I did. Thank you.
My question revolves around 401k/IRA savings vs. after-tax savings. The conventional wisdom for people still working seems to be to max out 401k + Roth IRA before even thinking about any after-tax accounts. I can see this as fine for people who intend to work until at least 55. But I am aiming to hang it up (at least semi...) around 47 or 48, and I'm in much better shape right now in 401k (around $250k) than I am in taxable accounts (around $30k).
Currently I'm just putting just enough in 401k to get the full benefit of company match, and DCAing what I can every month (typically $1000/mo right now) in after-tax accounts. No Roth IRA yet. I'd like to hear some comments about whether this basic approach is good/bad/average/idiocy. (What other options would there be when the time comes if I go all tax-deferred? Start SEPP? Accept penalty tax?)
Any comments are appreciated.
G.