Trying to be more informed about retirement/tax planning (l contributed almost nothing to roth for the years I worked before going back to school and regret it now).
My (our) situation:
Recently graduated from business school and set to start working in October (Covid-willing). Salary will be $155k + $25k sign-on bonus and eventually a possible ~10% annual bonus once the economy recovers. My girlfriend is in her last year of medical school and will make ~$60k for the next ~8 years (starting next July) before jumping up to ~$250k after that.
With our future combined income being pretty high, I’m trying to understand if it makes sense for me to contribute to Roth over the next few years or if at my salary (vs what we would withdraw during retirement) it doesn’t make sense to contribute to roth anymore (whether that be 401(k) or IRA).
Is the decision as simple as whether we’ll have more annual income in retirement than now? What’s a reasonable retirement income level for a HCOL U.S. city? Is there any reason to choose IRA over 401(k)?
Thank you in advance!
Obligatory: I’m new to reddit and this is my first ever post, so please forgive any important details I missed, I’ll add them in as future edits!
Submitted August 30, 2020 at 09:01PM by Actuary66 https://ift.tt/2YNErbi
