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URL:  https://boards.fool.com/retirement-savings-options-for-high-income-earne-29001256.aspx

Subject:  Retirement savings options for high-income earne Date:  1/4/2011  11:27 AM
Author:  unixjunkie Number:  68060 of 95241

Let's say I make about $200,000 annually (married w/ kids). I have a $600K house on which I owe about $350K, and I have no other debt. I'm very thankful that I'm in a pretty good position right now, and I want to make smart retirement plans.

I max out my employeer-sponsored Roth 401K each year, but I'd like to save another $20K each year. I have about 30 years until retirement. My question is: where should I save an extra $20K each year?

Some of my random thoughts on the topic:
- My employer offers an after-tax 401k option that I can put this $20k in. I think it's basically like a traditional IRA but with a higher limit. This is simple, so I'm leaning toward this option (Roth 401K + after-tax 401K).
- I want the investment(s) to be simple; hopefully just check on it once/twice a year.
- I make too much for a Roth IRA; I could do a traditional IRA then convert to Roth, but not sure if I should
- Should I just put all $20K each year into a Target 2040 retirement fund? Will I owe taxes each year on this?
- Should I just pay off my house quicker?

Where should a "high-income earner" put their money?

Thanks in advance.
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