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.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. M