I'm going to be starting a new job this summer. It's a year round position, and it will be my first ever 6-figure job. It will be in a remote and isolated area, but I've been working that the last few years so I'm used to it (that's the major downside). I own very few things- cold winter gear, coats, hats, gloves, boots, hunting gear, few hunting rifles. That's it. I have nothing else. When I move I pack everything into totes and mail it to the next place.
With the new job I'll have the ability to put away roughly $50K in the various tax sheltered accounts available under the Internal Revenue Code. I have no bills outside of normal expenses (food, utilities, rent) and have a large, liquid cash balance saved up for emergencies.
I'm trying to figure out what I should do with my excess cash flow. I've considered taking advantage of 100% of the tax sheltered space available to me. This would cut down on my tax bill now, take advantage of tax deferred compounding, and have an extra layer of asset protection vs a regular account or cash on hand.
Do you think it is a good idea to maximize the tax advantaged space? Have any of you ever gotten to a point and realized you had too much inside these accounts (for example, you want to pull money out before 59.5) and wished you had not done it?
With the new job I'll have the ability to put away roughly $50K in the various tax sheltered accounts available under the Internal Revenue Code. I have no bills outside of normal expenses (food, utilities, rent) and have a large, liquid cash balance saved up for emergencies.
I'm trying to figure out what I should do with my excess cash flow. I've considered taking advantage of 100% of the tax sheltered space available to me. This would cut down on my tax bill now, take advantage of tax deferred compounding, and have an extra layer of asset protection vs a regular account or cash on hand.
Do you think it is a good idea to maximize the tax advantaged space? Have any of you ever gotten to a point and realized you had too much inside these accounts (for example, you want to pull money out before 59.5) and wished you had not done it?