I'm crossposting this on the simpleliving.net discussion forums under the "Money" heading.
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First the basics: I'm 28 and trying for early retirement. I make $36,500 per year and have no debt. I rent an apt. I'm maxing out Roth IRA and 401(k)--30% per year to 401(k) with 5% employer match. I minimize expenses and am a good saver.
Current IRA/401(k) balance $22K total (100% Vanguard Index 500)
Money market balance $9K (thinking about buying some I-bonds)
$3K in taxable 500 index fund
Money market balance is maintained for emergency expenses and to save for down payment on house if I decide to purchase.
At my current respectable but not extremely high income level, my total yearly retirement account contributions (~$13K) make up a significant portion of my total investment dollars. I "only" have $300/month to invest outside of IRA/401(k).
My question/concern is: At say age 40, if I have enough to retire, the vast majority of it will be in retirement accounts that I can't access without penalty till I'm much older. What to do?
If I fully fund IRA/401(k) and put the other $300/month in money market toward a down payment, then I'm not doing any retirement investing outside of my retirement account. Is this a bad thing since I want to retire early?
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First the basics: I'm 28 and trying for early retirement. I make $36,500 per year and have no debt. I rent an apt. I'm maxing out Roth IRA and 401(k)--30% per year to 401(k) with 5% employer match. I minimize expenses and am a good saver.
Current IRA/401(k) balance $22K total (100% Vanguard Index 500)
Money market balance $9K (thinking about buying some I-bonds)
$3K in taxable 500 index fund
Money market balance is maintained for emergency expenses and to save for down payment on house if I decide to purchase.
At my current respectable but not extremely high income level, my total yearly retirement account contributions (~$13K) make up a significant portion of my total investment dollars. I "only" have $300/month to invest outside of IRA/401(k).
My question/concern is: At say age 40, if I have enough to retire, the vast majority of it will be in retirement accounts that I can't access without penalty till I'm much older. What to do?
If I fully fund IRA/401(k) and put the other $300/month in money market toward a down payment, then I'm not doing any retirement investing outside of my retirement account. Is this a bad thing since I want to retire early?