Hi folks,
I am new to the board and concept of FI but am so glad I found it. I am trying to maximize my efficiency to be able to set my family (I am recently married, I'm 32, she is 28, no kids yet) up for the future, as well as me personally. I am currently max'ing out my HSA and doing up to my company match on 401k (currently traditional though Roth is also available.)
Which leads me to where I'm at now. I feel like it is 50/50 support out there on whether I should maximize my (and my wife's) Roth or Traditional IRA. On one hand I know it's good to lower my AGI with Traditional, and that's what most of the FIRE blogs seem to suggest. But I'm also trying to be considerate of my wife's situation. She's interested in early retirement but if we maximize these tax vehicles we'll be living on much less than I think she is comfortable doing. Having a Roth there may put her mind to ease in regards to future expenses (we do want to buy a house in the next couple years.)
Here's a snapshot of our situation:
My salary: ~$45k before taxes (I like the company I work for, though am not sure on a timeline to get my salary greatly increased any time soon)
Her salary: ~$60k before taxes (She graduated nursing school and started her first RN job a month ago. She has plans to pursue further education all the way up to becoming an NP)
HSA: Maxed
My 401k: 5% (up to match)
Her 403b: 5% (match)
Rent:
$1378 (suburbs of Chicago)
We do have some student loans and a car loan (4k at 5%) which we are aggressively paying off. I'm reaching out for assistance on what we should do next. I am waiting on starting contributions to our 2016 IRAs until I know for a fact which one I want to go with. Also, I mentioned before that currently I'm contributing 5% to a traditional 401k through my employer but they also offer a Roth 401k, should I switch?
I know this is a beginner's question and I assure you I've done my fair bit of research the last couple months. But when it comes down to it, I'm still hesitant on knowing which is the best option for my wife and I in regards to our future.
Appreciate any feedback.