Where to save next?

[hopefulfirefly]

My dh & I are maxing out our Roth's & contributing the maximum to our 401K's up to our employers match. We have a 7 month EF built & have allocated savings into a 529 for our 3 month old son. We'd like to save more money for retirement but I'm not sure where we should be doing that at?

I'm 27, dh is 34, 1 child. I'm not sure if there is other essential information you need? Thanks for the help!

[disneysteve]

If you are only contributing to the 401k up to the amount needed to get the full match, you can add to that. The contribution limit is $16,500/year.

What percentage of your gross household income is currently going to retirement savings?

[hopefulfirefly]

If you are only contributing to the 401k up to the amount needed to get the full match, you can add to that. The contribution limit is $16,500/year.

What percentage of your gross household income is currently going to retirement savings?

Approximately 20% is going toward retirement.

I thought perhaps there was a better or more preferred way to save once the employer match had been maximized & Roth was maxed??? Adding to the 401K is obviously an option if that's the best step...

Thanks

[maat55]

You may look at a 529 for your child.

[jIM_Ohio]

My dh & I are maxing out our Roth's & contributing the maximum to our 401K's up to our employers match. We have a 7 month EF built & have allocated savings into a 529 for our 3 month old son. We'd like to save more money for retirement but I'm not sure where we should be doing that at?

I'm 27, dh is 34, 1 child. I'm not sure if there is other essential information you need? Thanks for the help!

I would prioritize as the following

1) 401k to 15% tax bracket
2) Roth IRAs
3) Pay down mortgage (pay off before starting #4)
4) 529s and college casings

What you are doing now is this

1) 401k to match
2) Roths
3) 529

which could be modified to this

1) 401k to match
2) Roth
3) 401k to 15% tax bracket (find out how much you need to add to lower the tax bracket- makes the Roths a better investment)
4) pay off mortgage before kid starts college
5) 529 plans

[hopefulfirefly]

Thank you Jim! That is very helpful! The 15% tax bracket goal never occurred to me....I've started another post about it because I'm a little unsure how to do it effectively. Thanks!