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>>In the near future, we plan to each put the max in for 401k<<
>>We are planning on aggressively saving (we do have some savings in non-retirement accounts) over the next several years<<

Congrats on recognizing your needs and the eminent issue you will have if you don't start now.

Based upon the fact that you do not qualify for a Roth IRA, then I assume your income exceeds $160K. That should allow you plenty of room to start some very aggressive investing, as you state. However, the two statements above appear contradictory. Am I missing something? Is there a lot of debt that needs to be paid off?

1. You should never pass up on the free money offered by employer matched 401-K, as that should be your absolute best investment (after all, what other investments return 100% year after year?). Start immediately on that, not in the "near future".
2. Determine immediately how much you will need in retirement income and over what period of time. Most financial planners (and myself) are assuming that if retirement age is 65, you will need at least 20 more years of cash flow for men and 25 for women.
3. Based upon the amount of income you will need and years you have left, you can work backwards to determine if you have enough of a head start and are investing enough at the right returns. In additional to modeling this myself, I use a model on a website at www. works great and will tell you if your current plan will allow you to meet your retirement goals.

I will review your stated investments and respond later on suggested changes.


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