Anonymous wrote:May I ask families who make 300-500 K how are you able to fund Roth IRA when you also funding 401 K ? I thought Roth IRA has income limit to contribute . But I see even people making 500 K saying they are contributing to Roth IRA ? How is it possible? Is there any get around to do it ? Even people whose gross income little over 205 k can’t contribute. I’m curious to know as I see that in lot of threads same kind of messages.

Google "backdoor roth."

May I ask families who make 300-500 K how are you able to fund Roth IRA when you also funding 401 K ? I thought Roth IRA has income limit to contribute . But I see even people making 500 K saying they are contributing to Roth IRA ? How is it possible? Is there any get around to do it ? Even people whose gross income little over 205 k can’t contribute. I’m curious to know as I see that in lot of threads same kind of messages.

1/4. With two caveats- we have 3 in daycare/aftercare and a very low mortgage.

HHI $275

401K/457B--$35
Employer Match --$9K
Reg Savings - $6k
Extra mortgage principle--$6K
Brokerage--$20K
bond-$2500

TSP + match: $30k
Simple IRA + match: $21k
Backdoor Roth: $6,500
Brokerage: $47k
Cash savings: $5k

I don't count paying down equity in primary or rental house as savings.

Income $350k, total savings $109,500, so 31%.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We make 92K. We saved 15K each in our Roths, added 8K to our HSA and 6K to my husband's 401K (the company only adds $1K total). So 44K total this year.

We don't have a mortgage and only have one kid in the house. We also already have their 529 funded which is why we can save so much.

We've always been frugal on a relatively low income. We will save less next year because our DC is going to a private HS.

I appreciated hearing from you. I'm inspired by households who have managed to fully fund a 529 and no longer have a mortgage.

How much is a fully funded 529 these days?

About half a million if private college and professional school.
If X years away from college discount back X years.

It only costs that much if you are a Total dumbass and your kid doesn’t get any merit money or apply for the gazillions of scholarships out there. We worked with a consultant, which cost us 3k and got 160k in scholarships and merit after it was all said and done. It’s not special nor uncommon.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:HHI about 900k per year (market performance matters). We are saving maybe 400k per year? We spent a ton this year on renovations, a car, new furniture, and my husband has gotten into buying wine. Next year we plan to buckle down and save 600k.

Huh? How would you save 600k on 900k gross? At the bare minimum, you’re talking 25% taxes and that’s 675k.

AND this is an example of troll post! LOL

Haha!

PP
Forgot to add that last year we made combined 406k

Maxing both 401k
Rental property mortgage 30k a year
Savings 50k a year
Primary mortgage 24k a year
So total around 144k
I also have a special savings account for unexpected purchases like furnace, remodels etc I keep it and replenish it at around 15k

290k HHI. 2 kids. Last year, 130k saved in:

TSP & Roth TSP
401K
Backdoor Roth
529
Brokerage
Savings account

Rest went to tax, insurance, mortgage, stores, music teachers and orchestras, basketball and swim teams, parents

$350k HHI gross. This year expecting $22,500k in 401k and $6500 in backdoor Roth. $13,000 in 529. Expecting average of $3500 cash/brokerage savings monthly. Employer match maybe adds a bit but not much. Currently paying down mortgage about $10k/year. I think that all adds up to about $95k this year hopefully. Paying down a school loan that will yield additional savings once it’s paid off in a year or so. I don’t have a 401k so that hurts us but we work with a financial advisor to make sure we stay on track.

I am in awe of the way people can save around here.

We have a combined HHI of about $340k.

Husband put 20k into his 401k
We saved 50k to use for investing which we will probably put into iBonds (30k) and a 529 account (20k).

So, I guess we only saved 20% of our income this year. We are paying off student loans, have a child with special needs for whom we pay a ton out of pocket for services, and our mortgage is $4000 a month which is too high. We spent about 10k on a vacation this year, whereas a typical vacation for us is budget of $3k, but we hadn't had an actual vacation in 5 years or more.

~300k HHI. 1 kid
$47.5k 401k
$17k 401k match
$13k backdoor Roth IRA
$10k 529
$7.3k HSA
$12k Mortgage principal payment
$10 - 20k investment

~ $120k savings