I’m going to be most likely in the 22-24% bracket as I don’t see myself ever making much more than say 120k. I currently make sub $100k but maybe I get lucky with the way the job markets are going.
I’m almost 40 now and have been following this method for about 15 years.
- have cash safety net
- contributing to take advantage of 401k match.
- max out hsa
- max out Roth IRA
- all left overs go into my brokerage account
I know a lot of people are saying, I should go back and max out my 401k. My issue im not a higher earner, almost no chance to max out 401k. But I see it as I rather have the cash on hand vs being locked in 401k and paying penalties if I need it.
I’m currently investing in half in dividend stocks and the other half in SPY. Currently have $3k in annual dividends income. Goal would be to have $12k or more when I’m ready to leave the workforce. Qualify dividends taxes are pretty low, either 0% or 15%.
Should I keep my current idea or is there a clear benefit in just maxing my 401k that I don’t see. I know saving money on taxes now and blah blah. But I feel that’s more for the higher income people that have more options for them to play with things.
Submitted March 09, 2024 at 10:41PM by lobstar28 https://ift.tt/5dMFmC6
