I have used only traditional 401k, no IRA's for some years.
I'm sure I'm missing out on some potential advantages but here's the reasoning:
- Right now I'm paying little or no income tax (almost feel guilty about this... almost)
- when I hit FI/RE income will go down a lot, as will income tax (especially if we still have tax credits running around the house)
- I am leery of 'locking up' any more assets in any type of account that I can't easily access. Age limits, early withdrawal penalties... Added complexities, with the added risk that politicians may change the laws (change withdrawal penalties, tax status, age etc) at any time.
My asset status is roughly:
$425k in 401k
$150k liquid, taxable investments
$100k home equity
So net worth is around $675k, but only 22% of that is 'liquid'; the rest is tied up.