That is some crazy impressive savings rate.
If I do the math, assuming $160k pre-tax, $90k savings is >56% gross savings rate. With $70k left for taxes and all discretionary and non-discretionary expenses, including the notoriously high property taxes and insurances in Texas.
That seems extremely frugal for a family with 3 young kids.
Totally agree with maxing Roth IRAs and 401k, but I would not lock up so much in Mega Backdoor Roth. I'd have some in an Emergency Fund, some in a taxable brokerage that is easily accessible, and some in 529s. I'd also spend a little more on life experiences, unless you are truly looking to actually retire early. But even then I wouldn't lock up so much in hard to access tax advantaged without some in taxable or an EF.
If I do the math, assuming $160k pre-tax, $90k savings is >56% gross savings rate. With $70k left for taxes and all discretionary and non-discretionary expenses, including the notoriously high property taxes and insurances in Texas.
That seems extremely frugal for a family with 3 young kids.
Totally agree with maxing Roth IRAs and 401k, but I would not lock up so much in Mega Backdoor Roth. I'd have some in an Emergency Fund, some in a taxable brokerage that is easily accessible, and some in 529s. I'd also spend a little more on life experiences, unless you are truly looking to actually retire early. But even then I wouldn't lock up so much in hard to access tax advantaged without some in taxable or an EF.
Statistics: Posted by OldSport — Wed Jan 03, 2024 2:30 am — Replies 10 — Views 1141