Thanks to all for the welcome and the info.
Iíve been thinking that after tax (atx) is the way to go especially since I have 16 more years
depressing) as uncledrz pointed out, and a fairly healthy start (80k). Iím not a govít worker so the TSP rules are N/A. The problem is that if I go the atx route, Iím way short of hitting my monthly savings target and am struggling with how to get there.
Here are some details:
Financial goals: Max 401k, fully fund Roths, build ďbridgeĒ fund to get from 55 to 59 Ĺ
Reality: I currently contribute 10% to my 401k (on income of 85-95k depending on bonus) and get a 100% match on first 5% , we donít contribute to DWís IRA (funded from 401k rollovers when she was working), we fund two Roths (self and DW), and put away 500/month in the atx account . I could max the 401k and not fund a Roth, but I thought more balance between Roths and 401k would be better from tax diversification standpoint.
My current 500/month atx savings is woefully short of what I would need to get the desired ER nest egg (about 625k in 2021 or approx 70k/yr, for 5 years, adjusted for inflation). Assuming 25% tax rate and 9% roi (6% adj for inflation), I figure I need to save just under 1,200/mo to get there or about 700 more per month than I save now.
I can get there by stopping both Roth contributions (for DW and self) and directing the funds to my atx account. Roths are not critical to the success of my current plan. We would be ok with just 401k, IRA and atx. I started the Roths because I liked the idea of tax free w/ds. Given this, what are your thoughts on giving the atx savings priority over funding Roths and maxing 401k? Once my income increases I would resume Roth contributions and eventually max the 401k .