My wife and I recently finished paying off our student loans and are trying to decide what to throw the surplus at. We're also expecting to purchase a house in the next 6 months or so.
- In our late 20s
- Combined income is expected to be $100,000 this year, including $10,000 self-employment income (her)
- Expenses expected to be about $35,000/year after house purchase
- $80,000 taxable savings (including $50,000 or so for a down payment); $40,000 retirement savings
- I have access to a 401(k) through work; she doesn't
We're not particularly interested in accelerating mortgage payments unless rates rise significantly before we purchase. However, psychologically we like the idea of saving enough in taxable to offset the mortgage (essentially, to feel like we could pay it off whenever we chose).
Would it be crazy to contribute less than the maximum to tax-deferred accounts? Would it be crazy to contribute the maximum? Are we missing something else entirely?