[USER]

Hey guys, I was wondering if I’d be able to get some advice. My wife and I have recently paid off all of our debt and realized we can invest approx $4000-$5000 per month.

This would mean we could maybe retire in 12 years at that point we would be 48 and 57.

I keep hearing that I should max out my 401K but I won’t have access to that money until I’m in my mid 60s.

Is it better for us to invest in index funds and add just a little to retirement? Or what are the benefits of still maxing out my 401K in this situation?

Thanks everyone.

Ps .I currently have 70k in retirement and I’m 36.

[Mark]

Tax benefits. There’s ways to access money before 59

[Bill]

If you retire after 55, you can withdraw early from your current 401k. You can also withdraw your Roth contributions early.

As a practical matter, $60k per year is more than the retirement account limits anyway, so some of that will need to go to brokerage account.

[Anh]

It helps lower your income that is taxed end of the year for one. And just another vehicle to invest in.

For us, my husband maxed out his 401k at his hospital job cause he makes way more than me.

And my other job at a clinic, I can only contribute 10% into my 401k and that included up to employer matching. This way, we still have some income to live off.

And then we each maxed out our Roth IRA too. This year we had to do a backdoor Roth because now we are married and the combined income is way over what we can contribute to Roth as individual.

Maybe play with your numbers and see…

[Tony]

How do you have so much money to invest, but have so little invested right now?

Did you ignore investments and paid off debt, even low interest debt?

Also, very confusing as to why you say you won’t have access to 401k until your mid 60’s.

[Author]

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