My wife and I will be debt free other than our mortgage(117,000) in two months. I just turned 31yrs old and my wife is 29. We have a 50,000 saved between my Roth IRA, my 401K, and her 401K. So here's our goal. We'd like to save 40% of our gross income to become FI asap. Hopefully in 10yrs ish.
So here's the details...
We make 120,000 gross a year combined
-I currently do not contribute to my Roth IRA(20,000 balance)
-I have a 401K with no employer match that invests 11.83% of my gross into low cost index funds.(No decreasing this, I can only increase percentage saved being I'm in a union and thats our contract)
-My wife currently contributes up to the full match of 6% into her 401K and that's it.
So basically with money going into our accounts stated above, paying all our bills/expenses, we have about $45,000 (net) left over every year. With a savings goal of 40% of our gross($48,000). This additional savings should be easily doable.
My game plan is to fully fund my Roth and get my wife a Roth and fully fund that as well. That'll be $11,000. Then we currently have $11,171 a year going into our 401K's. So that'll be $22,171 total. So that leaves another $25,829 to invest. Should I just put this in our 401K's and max them out. Or is there a better route? Should I use another investment tool? Personal taxable accounts?
EDIT: I would like to clarify that we have not blown our excess income. In two months we will have paid $85,000 in debt off in 2 years!! Also the my logic behind possibly not maxing the 401K's is because I don't know if the lower expense ratios paired with more options of a personal account will outweigh the advantages of putting it in our 401K's. That is all. Thanks for any help!