Hello, thank you for taking the time to read this and or help.
The basis of my questions are (1) How do I know I am saving enough?
(2) How do I distinguish the difference in my spending between roth and non roth? (it seems like 1million after tax is a much bigger number than 1mil pre tax in my retirement account).
(3) What else can I do?
(4) What is a good retirement calculator?
Ok so I am 31 years old. I was behind the game on saving but I am trying to catch up aggressively after paying off debt and going to grad school. I have also been radically adjusting my spending habits.
Today I have approx.
401k (non-roth)- 30k
Roth IRA - 8K
I make 110,000. As of Jan 1, this year, I am currently saving 25% of my income direct from my paycheck to my 401k. (After the cap, it converts to after tax dollars, I can then do an inservice withdraw and convert it to my Roth). I am trying to save an additional 5,500 after tax for my Roth IRA. I am married. (It gets more confusing when I add my wife to it, so I am just trying to figure this out as an individual).
Employer match is 4%
Currently my 401k is 30k
Roth IRA - 8K
Monthly take home is 4,000 after tax, insurance, 25% to the 401k, etc.
Mortgage & Taxes - 2,000
Utilities - 500
Random House Repairs - 100-300
Food - 300 - 400 (its 2 of us)
Insurance & Gas - $150
Roth IRA Savings - $500
Discretionary - $150
The float goes in a vanguard account.
With these numbers, how can I ensure that I am saving enough, if I use vanguards website, it says I will retire at 70. That seems pretty depressing, for saving as much as I can. If I use a different retirement calculator like market watch it says I can retire at 58. AARP says I can retire at 49.... (yeah right) Scott Trade says I can retire at 68 with a 50% confidence (that makes me feel great) (I have taken Social Security out of all to have a fair comparison and it seems questionable as to what level it will exist at). This is a really big difference, plus none seem to do a good job of accounting for the difference between my roth and traditional income.
Is there any good retirement calculators that account for the difference in my 401k vs my Roth savings? None of the ones online seem to really distinguish this. I would assume then they are not accounting for taxes which would seem to have a big impact. Either way the giant range makes them seem useless. I tired firecalc but that really doesn't give me great useable data, just a bunch of random lines.
Is this really enough, or did I just start too late in life to retire at a decent age (65)? 31 doesn't seem too old, yeah 22 would have been better, but this is where I am at and trying to make the best of it.
Is there any other tax deferred or retirement options I can do? With a max 401k, mega backdoor Roth, and backdoor Roth I can not think of any other investments that would be tax advantaged to retirement.
When I type this out, it seems like so much money. But in reality, I am legitimately concerned I may not be able to retire.
Thank you for your time and advice.
Submitted April 17, 2017 at 08:48PM by retirementthrowaway5 http://ift.tt/2oGNkSi
