Starting in January we will have our hair on fire debt cleared and be able to start socking away more cash. I have a 403(b) which I can only place 7% of my pre-tax in which I get a 4% match on (11% total). My wife has a 401(k) with a 100% match of first 3% pre-tax. We have about 17k in savings, 45k in the above workplace accounts, and 23k in a mix of traditional and Roth IRAs.
Fees and poor investment options make her 401(k) a non-starter for growing the pile of cash, but we do have the following options:
Roth IRAs for both of us with Vanguard (already open)
Traditional IRAs for both of us with Vanguard (already open)
A 457 Plan for myself with low fees and good investment options
Brokerage accounts with Vanguard
Ally Money Market account (already open but will be moving most of it to Vanguard Brokerage next year)
Current estimate and review of projected budget says over the course of 2015 we should have about $22,000 to put away on top of our current $8,500 in annual 401k/403b contributions. This is estimated to grow as youngest leaves daycare and promotions and pay raises create more opportunity for saving. I have two dimensions that I need help working out on this awesome problem:
1. We still need at least some cash to be relatively liquid (available within 2 weeks) so we can cover emergencies and upcoming expenses like a new roof.
2. We plan on hitting FIRE before we turn 50 so we need some put away in places we can reach with minimal penalty before we turn 59 1/2.
My leaning is to put about 8,200 in the 457, 6,000 total in the Trad IRAs, 6,200 in a brokerage and the rest in the Money Market.
Thank you!
