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Author: mikelly39 Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Retirement strategy suggestions? Date: 1/17/2007 10:36 AM
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I wanted to bounce this off of someone, and get some opinions.

Current situation:(37 years old)
Contribute 15% of my salary to my 401(k).
Receive a 5% match, plus 5% profit sharing.

Wife(36) is a Stay @ home Mom. I have 3 girls (1) 2yrs old, and (2) 7 month old twins. I have 27 years of mortgage left, which I can still deduct interest.

My scheme of the day is this:
1) Reduce my 401(k) contributions to 5%. This will allow me to continue to get the match & profit sharing.
2) Put 5% (After Tax) in my Roth
3) Put 5% (After Tax) in a 529 for the girls
4) Any extra monies, put towards mortgage (which should leave me with < 20 years of mortgage payments)

I'm thinking I should be paying the tax on that 10% now(#2 & #3), instead of later. Since I have 3 little tax deductions, & a mortgage, my tax liability is fairly low, right now.

According to my calculations, I could very well be in a higher tax bracket when I retire. (aiming for age 55)

Our mentality towards college has always been "That's what student loans are for", but I have the feeling that will change as we get older, so I want to be able to provide something for them.

We do not have any debt, besides the mortgage. I also have plenty of emergency money, and I have a pretty solid budget setup for everything else.

thanks for looking.
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