pluemusica
New member
Looking for some input on our financial situation.
Wife and I are in our early-to-mid 30’s, HHI is $310k before bonuses, we owe $57k left on our mortgage at 3.5% (our only debt), have $610k in our traditional 401k’s, and another $55k in our Roth IRA’s. We have $210k in a mixture of CD’s and money market accounts earning 5%+. We currently max out our 401k’s and backdoor Roth IRA’s.
The main area of question I have is, should we cut our 401k contributions down to the minimum company match (doing so would still result in us putting away $35k a year factoring in the company contributions), and instead start dumping money into a taxable brokerage account (while still fully funding our Roth IRA’s)? As it stands, if we take our $665k as a starting balance, contribute $49k per year ($35k 401k & $14k Roth IRA), assuming 7% a year over the next 27 years (we’ll be 60), we’d be at $7.8MM. Even at 4% a year, we’d still be at $4.2MM, plus whatever is in the brokerage account at that point.
My concern is that I don’t want to over-fund our retirement, compared to putting it in an account where we’d have access to funds for things before retirement, or possibly would allow us to retire early and live off the money in the taxable account until we’d be able to access the money in the traditional retirement accounts.
I think I know the answer of what we should do, but I’d appreciate the input and thoughts of others who may be more well versed when it comes to things like this. Thank you.
Wife and I are in our early-to-mid 30’s, HHI is $310k before bonuses, we owe $57k left on our mortgage at 3.5% (our only debt), have $610k in our traditional 401k’s, and another $55k in our Roth IRA’s. We have $210k in a mixture of CD’s and money market accounts earning 5%+. We currently max out our 401k’s and backdoor Roth IRA’s.
The main area of question I have is, should we cut our 401k contributions down to the minimum company match (doing so would still result in us putting away $35k a year factoring in the company contributions), and instead start dumping money into a taxable brokerage account (while still fully funding our Roth IRA’s)? As it stands, if we take our $665k as a starting balance, contribute $49k per year ($35k 401k & $14k Roth IRA), assuming 7% a year over the next 27 years (we’ll be 60), we’d be at $7.8MM. Even at 4% a year, we’d still be at $4.2MM, plus whatever is in the brokerage account at that point.
My concern is that I don’t want to over-fund our retirement, compared to putting it in an account where we’d have access to funds for things before retirement, or possibly would allow us to retire early and live off the money in the taxable account until we’d be able to access the money in the traditional retirement accounts.
I think I know the answer of what we should do, but I’d appreciate the input and thoughts of others who may be more well versed when it comes to things like this. Thank you.