How quickly to increase our retirement contributions?

[put me in coach]

SO and i are in a place where our job security is very high despite the health and economic issues right now.

We're in a cohabitating situation in a very HCOL area, and we're saving about $5-6k cash, plus almost $1k to retirement accounts. So much cash savings because we had plans to buy a house, but now we have decided against that. We have cash savings for >10% of a house down payment that's churning bank account bonuses (yes, i know that will be taxed).

I've got a 457. I'd like to max that out first before SO's 401k. All changes to my 457 won't go in effect until the next month. Should i slowly increase my 457 contributions slowly, or start allotting 100% of my pay to it right off the bat? (We can afford it.) There is no company match, so no need to make their match last all year.

[Car Jack]

I look at tax advantaged space as "use it or lose it" and plan that way every year.  My 401k has one good fund (which is all I need) and I take the max allowable for the year, divide it by 26 pay periods and put that number into the contribution spot.  I tend to wait for my taxes to be completed before doing any Roth, but have the money ready to go once I get the go ahead from my CPA.  Perhaps do the same.  Divide the max you can contribute by the number of pay periods remaining and put in that percentage.

[Zette]

SO and i are in a place where our job security is very high despite the health and economic issues right now.

We're in a cohabitating situation in a very HCOL area, and we're saving about $5-6k cash, plus almost $1k to retirement accounts. So much cash savings because we had plans to buy a house, but now we have decided against that. We have cash savings for >10% of a house down payment that's churning bank account bonuses (yes, i know that will be taxed).

I've got a 457. I'd like to max that out first before SO's 401k. All changes to my 457 won't go in effect until the next month. Should i slowly increase my 457 contributions slowly, or start allotting 100% of my pay to it right off the bat? (We can afford it.) There is no company match, so no need to make their match last all year.

Without the legal protections that come with marriage, it's unfair for one partner to put 100% of pay into a retirement fund before contributing to the other's retirement fund.  Your SO is both supporting you and taking on the risk that you could change the beneficiary and walk out.  If you were married legal protections would ensure the SO got some of that back.

[Steeze]

I would say divide your max 457 contribution for the year over the remaining pay periods in the year and do the same for your SO’s 401k. Max them both over the rest of the year. Seems like you save enough to do that pretty easy. That’s kind of the minimum you should be doing anyway.

I would also caution against saving 100% into one person’s retirement fund as that doesn’t seem fair, and could lead to resentment down the road.

[charis]

Agreed. You should be maxing both of your accounts.

[put me in coach]

Thanks everyone. Sounds like we should dollar cost average and spread it out over the year for both of our retirement accounts simultaneously.