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Author: sykesix Big gold star, 5000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 60177  
Subject: Re: 401K vs Roth IRA Date: 12/3/2013 6:12 PM
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Here's another thing I don't like about the conventional wisdom: It seems to be based on the premise that 401k up to the match + Roth is a sufficient amount of savings. If you want to retire early or retire comfortably you almost certainly need to save more than that.

Maybe if you are the sole person earning income in the household. For a two income married couple, each one could put $17,500 into a 401k and $5500 into a Roth IRA for a total savings of $46,000. If over 50, you can contribute $23,000 into the 401k and $6500 into the Roth IRA. If both of them are over 50, their total contributions could be $59,000 annually.

Note that I said 401(k) up to the match + Roth will almost certainly be insufficient. The OP has a 4% match, which is fairly typical. So if he makes say, $75K, 4% of that is $3K plus the $3K match. Include the $5.5K Roth = $11.5K annual savings.

$11.5K/year contribution over say, 25 years will give you a nest egg of about $700,000. Probably more than most people will have and will keep you from eating dog food, but you'll be clipping coupons.
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