Should I switch my contributions more towards taxable brokerage over my 401k?
Trying to figure out if it makes sense to pull back from maxing my traditional 401k (apart from up to my employer’s 5% match) given how much I’ve accumulated in retirement accounts so far and instead start contributing more to taxable brokerage to provide for greater flexibility/bridge money to retirement so that I have a chance of early ‘retiring’ in 5-10 years vs. having to navigate relatively more inflexible early withdrawal strategies (e.g. SEPP/72t). I also feel like saving more $ in taxable brokerage instead of via 401k contribution would make it easier for me to save up for future large purchases if desired (e.g. a house, wedding, cars, etc.)
What do you guys think?
My stats below:
Age: 35
Current income: $175k (& eligible for up to 20% bonus)
Investment portfolio:
- Trad. 401k: $529k
- Roth IRA: $226k
- HSA: $140k
Total in retirement accounts: $895k
- Taxable brokerage: $360k
- Cash: $30k
- Car: $30k
Non-retirement assets: $420k
Debt: None; I rent currently
Total yearly expenses: $70k (~50k is fixed expenses, $20k discretionary)
I think I ideally want my FIRE #/investable assets to reach $4-5M but thinking maybe I can get away with less if I were to take on even some part time work in early retirement that provides $20-$30k gross/year? I’m also not planning to have kids in the future.
Any and all feedback is appreciated.