Hi everyone,
My work has a unique benefit that I qualify for this year. Work offer two retirement accounts we can contribute to each year with a separate limit of 17.5k
1) 403b. 17.5k limit pre tax dollars, grows tax free and withdrawals are taxed as ordinary income
2) 457b 17.5k limit (in addition to my 403b) pre tax dollars, grows tax free and withdrawals are taxed as ordinary income
traditional IRA and do a roth conversion every year
5.5k
Wife
1) 403b - 17.5k
2) Traditionial IRA with roth conversion 5.5k
Combined gross income is right around 400k
Take home is 21k per month, spend about 8k per month on everything including saving for children for college.
We definitely have the cash flow to do the 457b plan but I'm wary of putting too much money in retirement accounts and not be able to use the money for early retirement. My wife and I are currently 35 and 34 and would like to have the option of exiting from the work force around 40-42. Currently have about 600k in liquid assets and no house. 200k a student debt at 2%. Plan on just paying the minimum forever.
Anyways, How would you guys do the retirement account funding?
Thanks,
Z