Balancing 403b vs ROTH
Currently I'm contributing 10% to my work 403b and minimally contributing to my ROTH every month. My tentative plan has been to finish my car loan and several projects then up my ROTH contribution to the max (probably sometime mid to late next year).
I'm wondering if it would be a better idea to drop my 403b contribution down to 4% (the employer match limit), and redirect the rest to the ROTH now (basically doubling my current contribution). This would let me raise it to the max quicker when the car is done, and leave more funds left over for shoving into long term goals and non-retirement investments.
Does this seem like a good idea or a horrible idea? :)
I don't know that it matters much. It's retirement savings either way, right? Do you prefer one account over the other? I guess with the ROTH, you have the ability to take out some of the principle but do you want to have that ability and take away from your future self?
This would let me raise it to the max quicker when the car is done, and leave more funds left over for shoving into long term goals and non-retirement investments.
Now that's different. You're basically saying you'd fund your retirement less in this scenario. It depends on whether you think you'd be putting enough into retirement. One rule of thumb is to aim to save at least 15% of your pre-tax income each year.