I can't find the thread now but I was reading about someone who was wondering how to allocate savings to get to FI as fast as possible.
My plan is to save $1,458 plus 200 a month in my 401k and then 1,300 a month into a vanguard index fund. It will take me 15 years to get to my target amounts. This will mean my money will be split into two accounts and I would live off the index funds until it was time to tap the 401k.
Now the money would compound faster if I could put it all in one pot. I would get to FI in 13 years. But if I were to put more than my 17500 and employer match into the 401k I will pay a penalty. Here is an article about it.
http://money.msn.com/saving-money-tips/post--what-if-you-over-contribute-to-a-401kIs there something better I could do?
Thanks.