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Generally, I suggest a balanced approach. Get some retirement savings in traditional accounts, some in Roth accounts, and some in ordinary accounts (with no special retirement tax breaks). That let's you pick and choose what works best for you each year. If you only have one type of account when you get to retirement, you might get lucky and have picked the right one, but you might not. With a balanced approach, you might not make what is, in hindsight, the best choice, but you are also unlikely to have made the worst choice either.


I just did a quick look, and we have about 55% of our retirement savings currently in taxable accounts, 2% in Roth IRAs (we contributed any time I wasn't working and we were eligible, which wasn't much) and 43% in traditional IRAs and 401ks, so I think we do have a reasonably balanced approach.

We are within 5 years of retirement. I actually haven't checked yet, but if I get any sort of retirement benefits from the new company, it might make sense for me to work at least 5 years, and I would do that, but we are fairly close to that milestone.

Our retirement assets noted above are about 68% of the goal, so we are making good progress on getting to retirement.

I do have a written retirement budget based a lot on our current levels of spending as well as some projections of what we will be doing during retirement, and we will need about 70% of my current income, so that's a lot less than our current household income which also includes DH's income, hence I am fairly certain we will be in a lower tax bracket in retirement than we are now.

Based on what everyone has said, it does appear to me that the best way to go is to stick with the traditional 401k, and continue to also add savings to our taxable investments.

Thanks to all for the great discussion on this.
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