Luckily, I accumulated no debt, but I took a very reduced salary.
Ive also made sporadic contributions to a Roth IRA, totaling almost $30,000.
Both of these accounts are invested in mutual funds targeting a retirement date in my 60s.
My current job doesnt pay into Social Security but there are several other ways to save for retirement.
I recently learned that there is yet another option: a deferred compensation plan.
I havent opted in to that, but Im wondering if I should.
And/or should I keep maxing out my Roth IRA?
My husband and I have a go at be smart with money.
We have about a six-month emergency fund, and we have no debt other than our mortgage.
I dont plan to retire early (see above: dream job!!).
Do I really need to do that much?
Do I need to do more?
Which accounts should I prioritize?
Youve already built a substantial nest egg at a relatively young age.
Typically, you want to save about 15% of your pretax income for retirement.
Youre currently saving around 23%.
You say you could contribute to a deferred-contribution plan on top of your existing retirement accounts.
But the 403(b) plan youre already contributing to is also a throw in of deferred-contribution plan.
A deferred-compensation plan is simply a retirement account that lets you defer part of your salary and invest it.
You always want to contribute enough to your employers retirement plan to take full advantage of any matching dollars.
Once youve gotten your employers full contribution, aim to max out your Roth IRA.
If you have extra money to invest, you’re able to contribute more to your employers plan.
Swipe Like a Millionaire No Gold Card Required
Ever wondered how millionaires get to be… millionaires?
So we looked into it.
What we found aresimple, millionaire-approved tipsthat anyone can use to manage their money.
Youve made good financial decisions.
Go ahead and indulge, even if that means saving a bit less for retirement.
you’re free to afford to spend money now without robbing your future self.
Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder.
Send your tricky money questions to[email protected]or chat with her inThe Penny Hoarder Community.
