Congratulations on maxing out your 401k/IRA! You seem to be well on track financially.
The next step depends on what your financial goals are. Here are a few options you can consider:
- To achieve tax diversification during retirement, you may want to consider setting up a Roth IRA. As you have maxed out your IRA limit for the year, you can do a Roth conversion, or start to contribute to your Roth next year. This will allow you the flexibility to choose to withdraw from a pre-tax or post-tax account during retirement.
- Do you have any other pressing financial needs? Do you have any non-mortgage debt? Are you saving for college, planning on buying a new home in the near future? If so, you may want to set some extra cash aside for such purposes and avoid taking on high-interest debt.
- Taxable stock investments can also be a good way to grow your money. When you invest outside of a retirement fund, you can choose to withdraw the money out at any point, without any penalty. However, keep in mind that taxes will apply, so you need to consider different tax planning strategies to make it worthwhile.
- Consider other investments: When investing outside of retirement funds, you can choose almost any types of investments. Many investors choose to go with real estate, private placements and other options, beyond stocks and bonds. Keep in mind that whichever investments you choose, be sure to perform due diligence to minimize the risk to your savings.