I'm 27, would like to retire in 15-20 years. Husband is looking for work, but right now this is what we have:
Category | Monthly | Comments | Annual |
Salary/Wages | $4,326 | | $51,912 |
Pretax Health Ins. | $85 | | $1,020 |
Pretax Vision/Dental Ins. | $25 | | $300 |
HSA/Pension | $471 | | $5,649 |
FICA base salary/wages | $3,745 | | $44,943 |
|
Traditional IRA | $458 | Room to increase? | $5,500 |
Employer Non-Match Contribution (5%) | $216 | | $2,596 |
Income subject to IRS tax | $3,287 | | $39,443 |
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|
Federal Adj. Gross Inc. | $3,287 | | $39,443 |
|
Federal tax | $83 | 2015 rates, stand. ded., 3 exempt. | $997 |
State/City tax | $170 | Guess, using 9.00% * Fed. AGI | $2,042 |
Soc. Sec. | $232 | Assumes 1 earner paying | $2,787 |
Medicare | $54 | | $652 |
Total income taxes | $540 | | $6,480 |
Income before other expenses | $2,747 | | $32,963 |
Monthly Expenses: | | | |
Mortgage | $733 | | $8,801 |
Property Tax | $150 | | $1,800 |
Mortgage Insurance | $39 | | $462 |
Hazard Insurance | $33 | | $397 |
Cable TV | $140 | | $1,680 |
Car Insurance (2 Cars) | $55 | | $660 |
Car Gas (2 Cars) | $150 | | $1,800 |
Electricity | $35 | | $420 |
Gas/Oil for heating | $50 | | $600 |
Groceries | $200 | | $2,400 |
Phone (cell) | $17 | | $204 |
Recycling/Trash | $15 | | $184 |
Water/Sewer | $25 | | $300 |
Non-mortgage total | $909 | | $10,907 |
Loans: | | | |
Shed Loan | $387 | | $4,639 |
Student Loan | $146 | | $1,746 |
|
Other tax-advantaged investments: | | | |
Roth IRA | $458 | | $5,500 |
Total Expense | $2,633 | | $31,593 |
Total to invest | $114 | | $1,370 |
|
Summary: | | | |
"Gross" income | $4,326 | | $51,912 |
Income taxes | $540 | | $6,480 |
After-tax income | $3,786 | | $45,432 |
IRA+401k/403b/TSP/457 (Savers' credit) | $917 | | $11,000 |
Living expenses | $2,223 | | $26,677 |
Non-mortgage loans | $532 | | $6,385 |
After-tax investable | $114 | | $1,370 |
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I have better funds in the IRA, which is why I am favoring the IRA over the 403b. Would the credits be worth the less appealing fund choices? Currently, my savings are:
Fidelity 401a (Employer contributes 5%, not a match):
$3,115.1779.95% SPTN 500 INDEX ADV
$2,490.72 Stock Investments Large Cap
.05% ER
20.05% SPTN EXT MKT IDX ADV
$624.45 Stock Investments Mid-Cap
.07% ER
Fidelity 403b (I have contributed to it in the past, but I am not actively contributing now):
$6,433.91 <--95% of this is in Roth 403b, 5% Traditional 403b
72.26% SPTN TOT MKT IDX ADV
$4,648.99 Stock Investments Large Cap
.05% ER
27.74% SPTN LT TR IDX ADV
$1,784.92 Bond Investments Income
.1% ER
Traditional IRA (My IRA):
$4,104.91VASGX Vanguard LifeStrategy Growth Fund Investor Shares
0.17% ER
Husband's IRA (Have not decided where to put his savings, Roth or Traditional?):
$3,000*Will probably choose Vanguard LifeStrategy Moderate Growth Fund (VSMGX) or the Conservative Growth Fund (VSCGX) for Emergency Fund
0.15 or 0.16% ER
If I were to put money into a taxable account vs. a Roth IRA for the emergency fund/early retirement bridge, how much of a difference would that make in available money? Wouldn't I lose a good chunk to taxes when investing in a taxable fund?