Rave-Unicorn-Votive t1_j6jnymw wrote on January 30, 2023 at 8:25 PM

How long have you been earning $178k? If you've been >$100k for several years, you're behind on retirement savings. If you went from $70k to $178k in the last 90 days, it's not that bad.

>I Contribute about 12% to 401k- goal is to max out this year

At $178k income, maxing it out shouldn't be a "goal" it should just be a given. Same with an IRA, which I don't see listed as a monthly expense.

>Allowance/Fun Spending $2000

That's quite a bit of fun for an incomplete emergency fund and someone concerned about retirement savings.

pharmagirl26 OP t1_j6ko8cr wrote on January 31, 2023 at 12:22 AM

I just got this position in May of past year. I was a student before and was making less than 20k.

I have a ROTH that I plan on maxing out via the backdoor. Wasn’t sure I could do both the roth and IRA.

I thought 2k for allowance was small. I could adjust to 1.5k

Rave-Unicorn-Votive t1_j6kpalt wrote on January 31, 2023 at 12:29 AM

>Wasn’t sure I could do both the roth and IRA.

A Roth IRA is an IRA.

>I thought 2k for allowance was small.

You thought 20% of your net pay on entertainment was small? That's more than your housing expense. That's a dangerous level of lifestyle creep for someone who was making $1500 a month just 9 months ago.

alwayslookingout t1_j6ktmwz wrote on January 31, 2023 at 1:01 AM

$2K/mo for allowance/fun is a lot especially when you have $54K of debt, even if they’re low-interest debts. You’re essentially borrowing at 1.49 to 3.49% each year for fun money by just keeping those loans around to spend 10% of your take home every month.

At your income level there’s no reason why you cannot max out your 401K and IRA unless you’re paying off high-interest debts or saving for a big purchase.