Ronstar
Moderator Emeritus
Now that our company has a safe harbor 401k plan, I can defer $16,500 plus the $5,500 catch up contribution for 2010.
Right now I'm working 3 days a week generating enough income to cover expenses. I plan to fully retire in August, 2011 at age 56, and then live off savings as long as possible before tapping into 401k around age 60-62. My "savings" is about $150k in cash and about $750k in real estate and business ownership that I may need to hold for awhile to regain value.
The cash on hand may not last me until 59.5 and I may have to liquidate real estate or business assets within the next 3 years unless I save more cash before I fully retire.
So my dilemma is: Do I max the 401k for long term $ ?, or save additional $ in a taxable account to bolster the nest egg for the first few years of retirement?
Right now I'm working 3 days a week generating enough income to cover expenses. I plan to fully retire in August, 2011 at age 56, and then live off savings as long as possible before tapping into 401k around age 60-62. My "savings" is about $150k in cash and about $750k in real estate and business ownership that I may need to hold for awhile to regain value.
The cash on hand may not last me until 59.5 and I may have to liquidate real estate or business assets within the next 3 years unless I save more cash before I fully retire.
So my dilemma is: Do I max the 401k for long term $ ?, or save additional $ in a taxable account to bolster the nest egg for the first few years of retirement?