Here's the situation. My goal is to retire in about 7 years by the time that I am 40.
Both my wife and I work and contribute to our 401k accounts at the maximum. By the time that we turn 59.5, we will EASILY have over a million in our 401k, and that's using a conservative estimate at 4 to 5% growth. That part isn't the problem.
The question is, knowing that our 401k accounts will provide plenty of income once we get older, would it be wiser to REDUCE our 401k contribution down to our company match point, then devote all additional money into our brokerage account that we can use much earlier - say, in 4 or 5 years? We have a couple hundred thousand in there now, so we need to kick that amount up pretty nicely in order to live off of that money for the long term until we hit 59.5.
The tax implications of not reducing our income as much as we are now by maximizing our 401k accounts is my main concern.
Has anyone performed this kind of switch before?