Hello, new to the forum, saving and investing, so I'm having some trouble answering my questions online--it's not basic *enough* for me, apparently.
For the last some amount of years, I've been putting 5% into my 401k, because that's what my company match is. I decided after reading the blog to up that to 10% to see how it felt (since I should apparently be trying to get as close to cap as I can) and it hasn't taken effect yet. I got my taxes done yesterday, and this is the first year I made it into the 25% tax bracket. Ouch. So I thought it would be a good idea to lower my tax rate by getting more money invested pre-tax...but I have no idea what I'm doing.
My income is incredibly variable, due to the completely unpredictable nature of mandatory overtime at my job. Apparently my AGI was $76,650 last year? No idea if I'll make that much, less or more this year. I've changed my 401k deduction to 24%, because that should get me to cap or close based on last year's income (which is really all I have to go off of). I'm concerned about not putting in enough, or alternatively, hitting the cap too soon and missing the employer match for the rest of the year. How do those of you with variable income resolve this?
Second question: I was also thinking about opening an IRA with Vanguard, because I thought that traditional IRA deductions were also pre-tax income? But some of the articles I've read online suggest that it is, and others seem to say that it's a post-tax contribution that you then write off as a tax deduction at the end of the year? Can't seem to figure out how this works...and where does the $5,500 limit come in? If it's post-tax anyway, why does it matter how much you put in?
Lastly, I currently have my 401k through Charles Schwab, just changed my allocations (?) to 50% VINIX, 25% VTSNX, 25% VBTIX, with $44,000 in the 401k. I'm looking to retire in 15ish years (or sooner!) if possible. I know I'm just starting out, but is this...how bad was this decision?
Any help or advice on any or all of these topics would be extremely welcome. I'm doing as much research as I can on my own, but I'm feeling a little out of my depth.
Thanks!