[USER]

Looking for thoughts and comments for my scenario:
– Mid-40s couple, $2MM+ in 401k/IRA accounts which will provide for us in another 20 years

– We’ve lived comfortably but are rather frugal and would like to travel etc. more as we quickly approach being empty nesters

– We’re both reaching peak earning years in new roles and will have combined annual income of ~$400k after averaging closer to $200-250 over the last 10-15 years

– I’m thinking we pull back retirement account contributions from max to company match and put as much as we can into taxable investments to build that portfolio.

Currently have ~$500k between HYSA / taxable brokerage

– Other details: Have $500k+ in home equity, only debt is a $200k mortgage at 3%

What actions would you all recommend to allow us to retire, or at least slow down from corporate America and into more of a passion job (with healthcare) in…5 years? 10 years?

Also would you pay a fee only planner to evaluate your position/plan?

I’ve always done it all myself but occasionally wonder what a second opinion may reveal.

[Rebecka]

Why would you ever fund a taxable account prior to maxing 401k? 401k is tax advantaged that makes no sense right?

[GlorIa]

Would one be able to keep working to have benefits and the other go part time and then retire?

You would have to run the numbers so a fee only planner sounds good to do different simulations.

I think there is the opportunity to convert some 401k into Roth IRAs as you guys transitions as well.

[Dugan]

Given your goals and timeline, shifting some contributions from retirement accounts to taxable investments makes sense to increase liquidity and flexibility for an earlier lifestyle change.

The Tardus Income Snowball could be a useful strategy here—it’s a coaching program that helps you leverage shorter-term, income-producing assets to create steady passive income, which can help fund that transition from corporate life without fully relying on retirement accounts.

It’s designed to complement your existing portfolio and give you more control over cash flow.

[Huan]

Your marginal tax rate is higher now and hence I suggest to continue maximizing the 401k contribution. Also contribute to Roth Mega-Backdoor if your 401k plan allows it.

I suggest to put more into Roth before brokerage account.

Once you retire early (after 55), you can use Rule of 55 to start Roth conversion to lessen the RMD impact when you turn 75.

[Jule]

Are you looking to build a bridge account to get you to early/passive retirement before you can access your retirement accounts?

If so, do you know that you can access retirement accounts by 55.

It’s the rule of 72(t). Otherwise a taxable brokerage account is your only other option.

I once paid a CFP to get a professional eye on my portfolio. Wasted $800 – all he said was “you are doing great, keep it up! Here are some projections.”

[Author]

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