I would like to start by stating I have spent quite a bit of time researching my question but I am still struggling to find an answer that is satisfying.
Me: Age 30. Federal Employee, health care professional. I can retire after 20 years (age 50) but mandatory in 27 (age 57). I’ll have a ~$40,000 pension. I currently make $71,000/year but I’ll make around $110,000-$120,000 by the time I retire. I have a professional background and will likely continue to work for at least another 10 or so years full-time after retiring from my federal position. I enjoy what I do and being completely retired while my spouse is still working will probably not work well for me.
Spouse: Age 28. Teacher Making $45,000 year. She will likely retire in 30-35 years with a final salary of $84,000. She’ll receive a pension of ~$40,000.
Currently, we both work a single full-time job ($116,000 combined, 25% tax bracket). I may begin doing some private practice things on the side in the near future.
Current expenses:
$183,000 mortgage, no other debt. 30 year, 3.5%. interest. We have 29 years left to go.
Student loan debt is significant but will be paid off entirely in 10 years if I stay with my employer.
Currently have a fully funded emergency fund
No other debt
In short:
Current income = $116,000
Income in 15 years = $110,000 (me) + $60,000 (spouse) = $170,000, plus whatever additional income I make part-time in private practice.
In 20 years = $40,000 pension (me, retired Fed), $70,000 (wife’s salary) (total = $110,000), plus what additional income I decide to bring in
In 30-35 years = $80,000 pension (wife and I both retired), plus whatever additional income I decide to bring in
*None of these amounts consider the money we would withdrawal from our retirement accounts.
We currently contribute 30% of our income to retirement accounts My wife is currently contributing to her 403b. She does not receive a match. I am contributing to a traditional TSP and receive a 5% match (which will be about $100,000 in contributions over the course of my career).
Here is my question. Given the above-mentioned information, my primary question is should I be maxing out my Roth TSP or my traditional TSP?
I also would like to hear opinions regarding what my investment priories should be for various retirement vehicles (e.g., IRA, Roth IRA, 403b, trad TSP, Roth TSP, HSA)?
Thank you in advance.