Reply to Another budget post: tell me how I'm doing (HHI=$145k)

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[quote=Anonymous][quote=Anonymous]OP again. Yes hoping to have a 2nd DC, likely not more (not at this HHI at least  :) )

What is the "max" for employer retirement accounts? Not sure we can do that + max out Roths.[/quote]

If you can't max your 401Ks right now then keep with the 401k up to the match and add an IRA (many like a Roth, including me).  401K max is $17.5K but some companies only allow a % of your income like 15%.  But also sit down and do a "how much will I need in retirement" calculator.  It seems far off, but the earlier you save, the more time you have for it to compound.  It's good to at least be aware of your future needs. General advice is to save 15% of your income each year for retirement.  If you make $140, then you should be saving about $21K per year. With the 6% you are saving now, an additional $11.5K in a Roth will put you very close to the 15% mark.  You might also try to up your 401K by a % point each year, so try to do 4% this year, 5% next year, etc.

In addition to retirement savings, I also like haivng a general savings account (not just an emergency fund). Think about what your expenses will be in the next few years and save for them - another car, household repairs, living expenses when you take off work to have a second child, etc.  The emergency account should truly just be reserved for emergencies (loss of job, illness, major house damage, etc.).  Things like a new car or a new roof are predictable expenses that should be saved for.[/quote]

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