Hi everyone,

I have made a plan my wife and I will start in the new year for retirement savings. We are 26 and 25 and squarely in the 22% fed + 6.25% state and local brackets. Our monthly spend is 5k on needs/wants and another 2k for sinking funds for vacations, house improvements/repairs, etc.

For background our current assets are:
10k in a traditional 401k. 50k in a Roth 401k. 100k in our Roth IRAs ~50k each.
6k in a brokerage Mortgage of 290k @6.875%.

We max both Roth IRAs every year and my wife has just started maxing her Roth 401k.

The new plan would be to switch contributions to traditional for the 401k but keep IRA Roth. We would then use the 401k tax savings to start consistently funding the brokerage with 1k/month.

By the time she reaches 60, I would expect a split of ~3.5m in a Roth, 4.2m in traditional, and 1.65m in a brokerage. Or a 37-45-18 percent split between the three types. I could see the brokerage rise higher since we would contribute more to that as income increases, but keep retirement accounts saving at 25% of income.

I’m curious if this sounds reasonable, should anything be changed, and also how others on this sub break down savings.