Anonymous wrote:

Anonymous wrote:we also max out our 401ks. I also have a megs roth through my company and i contribute the max to that which is 32k. We then do direct deposit of 1.5k per paycheck into wealthfront (robo investors). That’s all. we are done turn 529, especially since kid #1 got a full ride. That basically left a major surplus for kid 2. We are 47 and feel we are in a good place to quit at 59.

Who is 47 with a kid already out of college.

A good portion of the country? DC skews way late on marriage/births. Having your first baby before 25 is commonplace much of the country/world.

Follow the FOO (Financial Order of Operations)

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Anonymous wrote:we also max out our 401ks. I also have a megs roth through my company and i contribute the max to that which is 32k. We then do direct deposit of 1.5k per paycheck into wealthfront (robo investors). That’s all. we are done turn 529, especially since kid #1 got a full ride. That basically left a major surplus for kid 2. We are 47 and feel we are in a good place to quit at 59.

Who is 47 with a kid already out of college.

Anonymous wrote:

Anonymous wrote:Max 401ks
Max Roth IRAs
Fully fund 529s
Taxable brokerage ETF

What is considered a fully funded 529?

This is the OP. We are not going to have fully funded 529s by the time our kids go to college in any case, but I would consider it appx $160,000 for in state (VA) or $240k (per kid) if I was willing to pay private.

My kids are 15, 12, and 9 rn. I might have to revise those #s for the younger two. I would like to pay for my kids in state tuition or equivalent price - between money that my parents are contributing, money that we have saved in 529s, and money that we could pay OOP or take out loans depending on what we decide we want to do at the time.

Anonymous wrote:

Anonymous wrote:Max 401ks
Max Roth IRAs
Fully fund 529s
Taxable brokerage ETF

What is considered a fully funded 529?

Not the PP but I think this varies based on personal goals (4 years in state, 4 years private, enough to cover grad school, etc). I don’t think there can be one set definition or amount.

Anonymous wrote:Max 401ks
Max Roth IRAs
Fully fund 529s
Taxable brokerage ETF

What is considered a fully funded 529?

Anonymous wrote:

Anonymous wrote:Does your employer not match or true up your matches? If not, you are leaving money on the table and should adjust your withholdings accordingly.

If you are only putting 10% to 401K, how are you putting 20% to retirement if you aren’t doing a backdoor Roth (or I assume mega backdoor).

Anyway, if I really didn’t need the money for retirement, I would put some into index funds and spend the rest. But at your level of income I would consider diversifying your retirement portfolio beyond 401Ks (HSA, backdoor Roth, mega backdoor Roth if available).

No match unfortunately. I put 10% of my paycheck to retirement - but my husband also takes from his paycheck for retirement - that’s how we get to 20%.

If you both max your 401k and you contribute 20% total to retirement, you can’t make more than $230K (20% is $46K or two 401K max contributions of $23K). But it seems like you make $306K alone?

Am I misunderstanding the math? Or does your husband have access to a mega backdoor Roth?

I maxed out in Sept. and have been throwing the extra money into my brokerage account.

Anonymous wrote:There is a thing called Charity.

Charity is not a bad idea - maybe after I feel more comfortable with 529 amounts.

Anonymous wrote:Does your employer not match or true up your matches? If not, you are leaving money on the table and should adjust your withholdings accordingly.

If you are only putting 10% to 401K, how are you putting 20% to retirement if you aren’t doing a backdoor Roth (or I assume mega backdoor).

Anyway, if I really didn’t need the money for retirement, I would put some into index funds and spend the rest. But at your level of income I would consider diversifying your retirement portfolio beyond 401Ks (HSA, backdoor Roth, mega backdoor Roth if available).

No match unfortunately. I put 10% of my paycheck to retirement - but my husband also takes from his paycheck for retirement - that’s how we get to 20%.

There is a thing called Charity.

Max 401ks
Max Roth IRAs
Fully fund 529s
Taxable brokerage ETF

Anonymous wrote:Does your employer not match or true up your matches? If not, you are leaving money on the table and should adjust your withholdings accordingly.

If you are only putting 10% to 401K, how are you putting 20% to retirement if you aren’t doing a backdoor Roth (or I assume mega backdoor).

Anyway, if I really didn’t need the money for retirement, I would put some into index funds and spend the rest. But at your level of income I would consider diversifying your retirement portfolio beyond 401Ks (HSA, backdoor Roth, mega backdoor Roth if available).

PP here - if you don’t have a 529 and have kids, definitely put the money towards that.

But if you do, and have an EF, I am a big advocate of spending now. If your retirement is secure, EF is set and college savings is in place, there is truly no harm in enjoying the money you earn. You can’t take it with you.

I would also still consider diversifying your retirement portfolio as mentioned above.

Charitable giving

Anonymous wrote:

Anonymous wrote:My nov/Dec is what contributes to the back door Roth. I want to retire at 55 and 45 now.

If you want to retire at 45, you need to put in a brokerage account, not Roth.

I assume PP will rely on the Rule of 55 if available to them.