prayingwarrior
New member
Been trying to educate myself and make smarter decisions for our financial future over the last 12 months (better late than never). I have a couple HYSA's (@ 5%) through LendingCLub, brokerage, traditional IRA and roth IRA (all through Fidelity) along with an employer-sponsored 401(k) through Voya. Everything gets funded regularly except the traditional IRA (I need advice on what to do with it).
For context - 35M making just north of $67K/year, dual income, 2 kids (6 and 2), HHI about $145K. Saving about 48-50% of take-home pay or ~$4300/month.
Breakdown is as follows:
Should I contribute anything additional to my traditional IRA or just let it ride? I do want to max my 401(k) contributions but we need to save and figure out the house situation first.
I didn't do 529's for my kids because frankly I don't know if they'll continue their education or not and wanted to have liquid cash for them no matter what they plan on doing. (Is this flawed logic)?
I also didn't include my wife's retirement accounts. While I have access to them, I don't usually touch them.
For context - 35M making just north of $67K/year, dual income, 2 kids (6 and 2), HHI about $145K. Saving about 48-50% of take-home pay or ~$4300/month.
Breakdown is as follows:
- Traditional IRA (Fidelity) - $100K. 60% FXAIX, 40% FDEWX. Mostly rollover funds, made one post-tax contribution of $6500 for 2023.
- Roth IRA (Fidelity) - $7.5K, 100% FXAIX. I plan to continue making the max contribution to it year over year.
- Brokerage - $9.3K. 50/50 on FSKAX and FXAIX. I contribute what I can
- 401(k) (Voya) - $13.6K. 100% in BlackRock LifePath Index 2055 Non-Lendable Fund F. Started about 14 months ago. Contributing 10% with 2% increase year/year up to 16%. Company match up to 6%.
- HYSA 1 : $37K. 30K for emergency fund, everything else is earmarked for possible down payment on a new house, if needed (18 month goal). We have nearly $150K of equity in our current home.
- HYSA 2: $8.5K. This is savings for my oldest child, I contribute $445/mo.
- HYSA 3: $3.2K. This is savings for my youngest child, I contribute $335/mo.
- Home equity is about $100-150K.
- Buy a new house in the next 18 months (sell current home). Purchase price of $450K or less.
- Have $100K per kid saved by the time they graduate high school.
- Possibly retire early or "on time."
Should I contribute anything additional to my traditional IRA or just let it ride? I do want to max my 401(k) contributions but we need to save and figure out the house situation first.
I didn't do 529's for my kids because frankly I don't know if they'll continue their education or not and wanted to have liquid cash for them no matter what they plan on doing. (Is this flawed logic)?
I also didn't include my wife's retirement accounts. While I have access to them, I don't usually touch them.