Hi everyone- We are new to this site. I just found this only a week ago. I've been reading and finally decided post where we are today. Let's me say, we are not close to retirement. We paid off a lot of debt last year.
Let me be honest, my own retirement is not enough. I only have $50K in my 457 & Roth. I can collect pension early at 55, much higher at age 63. Most likely 63 is the best age to retire. I stand to collect around $60K maybe $70K a year with cola. I also plan to collect SS at 63. My wife will have pension at age 60. Her pension is maybe around $4000 a month w/cola.
So here's our information.
current age 47, her 40.
Our combined income $193K. Our taxable income $157K last year.
This year, we are putting:
36K - Tax deferred Account
5500 - ROTH(contributed fully)
15K - EE mandatory pension contributions
$22K - ER pension contributions
$78,500
Our investment profile: 70% stock Index/International, 20% bonds, 10% REITS
Retirement balance 457 & 401K (no match): 380K Fidelity & Vanguard index
Emergency fund:$30K MM
Brokerage $5K Wellington Fund Vanguard
Home Value $333K
Our kids age 10 & 12 years old (son is special need)
Our only debt is our mortgage: $218K (15-year fixed 3.3%) Refi last year. Payment $2000 a month (PITI). Total monthly expenses $6500 a month include our mortgage.
Our current dilemma. Max retirement 457 & 401K + ROTH or Pay off the home + increase into taxable savings. We do not have much in savings since we plan to use some of that to do some home renovation in few years. I drive a beater to work that will need to be replaced in few years as well.
The problem is we pay so much in taxes. Our accountant is always hammering us to put more towards retirements since we do not have much in retirement balance. It will help our lower our taxes. I'm trying to find the balance. Do we put more in retirement or more towards taxable savings while paying more towards the mortgage. What is the best approach in your opinion.
As far our career. We both have stable jobs. Our family + both parents are here, we do not plan to move anywhere else. Sure its HCOLA but we love it here. We have no plan to move anywhere except until we retire. Even then we still plan to live in California.
Let me be honest, my own retirement is not enough. I only have $50K in my 457 & Roth. I can collect pension early at 55, much higher at age 63. Most likely 63 is the best age to retire. I stand to collect around $60K maybe $70K a year with cola. I also plan to collect SS at 63. My wife will have pension at age 60. Her pension is maybe around $4000 a month w/cola.
So here's our information.
current age 47, her 40.
Our combined income $193K. Our taxable income $157K last year.
This year, we are putting:
36K - Tax deferred Account
5500 - ROTH(contributed fully)
15K - EE mandatory pension contributions
$22K - ER pension contributions
$78,500
Our investment profile: 70% stock Index/International, 20% bonds, 10% REITS
Retirement balance 457 & 401K (no match): 380K Fidelity & Vanguard index
Emergency fund:$30K MM
Brokerage $5K Wellington Fund Vanguard
Home Value $333K
Our kids age 10 & 12 years old (son is special need)
Our only debt is our mortgage: $218K (15-year fixed 3.3%) Refi last year. Payment $2000 a month (PITI). Total monthly expenses $6500 a month include our mortgage.
Our current dilemma. Max retirement 457 & 401K + ROTH or Pay off the home + increase into taxable savings. We do not have much in savings since we plan to use some of that to do some home renovation in few years. I drive a beater to work that will need to be replaced in few years as well.
The problem is we pay so much in taxes. Our accountant is always hammering us to put more towards retirements since we do not have much in retirement balance. It will help our lower our taxes. I'm trying to find the balance. Do we put more in retirement or more towards taxable savings while paying more towards the mortgage. What is the best approach in your opinion.
As far our career. We both have stable jobs. Our family + both parents are here, we do not plan to move anywhere else. Sure its HCOLA but we love it here. We have no plan to move anywhere except until we retire. Even then we still plan to live in California.
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