I'm set in a routine for the moment, but I'd like to gather some professional advice from the professional Mustacians out here on the interwebs. The common consensus of where to put your saved cashflow tends to looks something like:
1) 401(k)/403(b)
2) Roth or traditional IRA
3) Any other tax-advantaged retirement buckets
4) Vanguard shares.
I'm in the lower-income 15% tax bracket, so I simply don't have enough savings per month to make it down that whole list. Instead, I've been following the generalized advice seen here: (Great read, by the way)
http://jlcollinsnh.com/2011/06/08/how-i-failed-my-daughter-and-a-simple-path-to-wealth/ So first here's my current allocation of savings, then I'll ask my question. Each paycheck my savings runs through the gambit of:
1) 403(b) contribution up to 5% employer match
2) Auto-deposit to a Betterment account designed to become a 20% House downpayment in approximately 5 years
- Note: If the market is tanking and these funds aren't available when I would otherwise be ready to buy, there should be no rush in waiting for it to bounce back and I am therefore comfortable with this risk.
3) Buying VTSAX (actually only Investor shares for now, but will become Admiral shares when I hit $10k).
So here's my question: I should be investing in VTSAX instead of making contributions to a Roth IRA, right? If all my savings went into funds that I cannot access penalty-free until I'm about 60, then I can't use those funds to retire early. So my logic is to swell my VTSAX in pursuit of FI through its "4% rule" dividends someday, and my 403(b) will be "old man money" to supplement my wealth once I qualify to withdraw it.
I consider my House Downpayment deposits a temporary allocation until the day comes when I can actually buy a House without PMI, then the money I had been contributing every month will free up for additional deposits elsewhere.
What do you guys think: stay the course, or should I consider an alternative? Thanks for your insight, as always!