Im 42.
Wife is 38.
We will retire when I hit 50. I will have a pension. She will have one but wont be able to draw it until she is 50 ( so 4 years later).
We max out our 457b's. We have taxable accounts as well but arent currently adding to them. We have small Roths that we arent currently adding to.
We will need to draw from our investments immediatley upon retirement to cover the 4 year gap until her pension kicks in. I have run FireCalc and I know approx how much our income will be in retirement. We will try to keep our income consistent before and after her pension kicks in which means we will be drawign quite a bit more from investments the 1st 4 years than we will after that point.
Ok, so on to the question: Where should we invest new money?
We have about $1000 / month in new money to start investing. Our choices would be any combination of Roth, taxable accounts or 401k. We dont currently have any money in 401ks because our 457b plan is much better and I only a few days ago did I realize that we can contribute the max to both. The 457b plan allow us to withdraw any amount of money any time we want regardless of age with no penalty. Of course the 401k will have penalties before age 55. Same thing with the Roth unless we do SEPPs (which I dont want to mess with).
If we put the new money in the taxable accounts we will have full access to it, but lose the tax deferral of the 401k and the tax free Roth growth.
We could put the new money in the 401k and Roth but then there would be very little money in the taxable accounts.
I guess I know I should put the money in the 401k and / or Roth but have a hangup about not having full access to the money immediately. I guess I shouldnt worry about that since the 457b accounts will have enough money to cover what we need to draw anyway right?
Wife is 38.
We will retire when I hit 50. I will have a pension. She will have one but wont be able to draw it until she is 50 ( so 4 years later).
We max out our 457b's. We have taxable accounts as well but arent currently adding to them. We have small Roths that we arent currently adding to.
We will need to draw from our investments immediatley upon retirement to cover the 4 year gap until her pension kicks in. I have run FireCalc and I know approx how much our income will be in retirement. We will try to keep our income consistent before and after her pension kicks in which means we will be drawign quite a bit more from investments the 1st 4 years than we will after that point.
Ok, so on to the question: Where should we invest new money?
We have about $1000 / month in new money to start investing. Our choices would be any combination of Roth, taxable accounts or 401k. We dont currently have any money in 401ks because our 457b plan is much better and I only a few days ago did I realize that we can contribute the max to both. The 457b plan allow us to withdraw any amount of money any time we want regardless of age with no penalty. Of course the 401k will have penalties before age 55. Same thing with the Roth unless we do SEPPs (which I dont want to mess with).
If we put the new money in the taxable accounts we will have full access to it, but lose the tax deferral of the 401k and the tax free Roth growth.
We could put the new money in the 401k and Roth but then there would be very little money in the taxable accounts.
I guess I know I should put the money in the 401k and / or Roth but have a hangup about not having full access to the money immediately. I guess I shouldnt worry about that since the 457b accounts will have enough money to cover what we need to draw anyway right?
