In addition we expect to transfer $15,000 from our operating accounts into our operating reserve (money market accounts). This will let us earn more interest and reflects the benefits of both our incomes significantly exceeding our current expense load.
Furthermore, we will put another $1200 into either our operating reserve or our Vanguard non-retirement account to accrue for the annual 529 contribution.
Finally, we have been quite aggressive in saving into our 401(k) retirement plans. Our motivations have been as follows:
- I'm still not 100% confident in my new job, if it ends soon, I'd like to maximize my savings, though my reviews have been positive.
- With my wife most likely to change employers, she wants to contribute to the plan she's eligible for. She may have a 90 day or 365 day exclusion from her new employer's plan.
MY 401k contributions
Year to date: $12,186.00 (includes 1/2 Feb contributions)
February expected: $11,440.00
I will max out my contributions by month's end at $15,500.
My wife's 401k contributions
Year to date: $13,110.00 (includes Feb Contributions)
February expected: $6,675.00
She will max out her contributions by mid-March.
Once we have maximized our retirement savings I will put all extra money into either a high interest money market or our Vanguard non-retirement account.
The goal is to max out non-deductible IRA contributions for this tax year - but only after we've moved and are settled in the new home. I don't want to imperil our cash situation.