Next year we plan to increase our savings amount by $7,500. At first I was going to increase my 401k by 7,500 to reduce taxable income, but when I looked at the 401k fees I am now second guessing this. I would consider paying down the mortgage with this money as an option, though I'm not against keeping my mortgage for the full term if it is more beneficial to put my money elsewhere.
General Info
- Household income: 145k
- Mortgage: 128k left for 15 years at 3.25%
- No other debt
- Emergency fund of 50k, too much for us which is why we will increase automatic savings next year
Retirement Info
- Spouse's 401k: maxed out - in vanguard target funds with max $300 annual admin fee; 13,000 traditional 401k and 5,000 Roth 401k per year
- Spouse's Roth IRA: maxed out
- My Roth IRA: maxed out
- My 401k: ~6,600/yr - just to get the match (my company's match amount varies each year, last year I received ~500). In vanguard funds with low expense ratios but a management fee of .9% with no max amount of fees paid is attached to my balance - maybe this is normal but it is much higher than my spouse's 401k
- Currently do not have any other investment accounts, all investments are in retirement accounts, so it may make sense to open one
- Total retirement savings currently ~200k
-Current goal of $2m for FI, though I'm fairly new to that concept so this could change as I learn more.
What do I do with the $7,500/year savings increase?
- my 401k despite the higher fees
- open investment account
- pay down mortgage
- something amazing I don't know about yet
Looking at this it seems like I should consider switching my husband's 5k Roth 401k portion back to traditional 401k as well??
Thanks in advance!