Hit x25 yearly expense

Saving
#1

I want to know my exact number for the x25. If I have a Pre-Tax 401k and a Roth IRA, should I add both account to know where I will hit the x25?

I know that I will not pay taxes on my Roth IRA, but I will on my 401K. Is the taxes going to affect me that much?

#2

Hi Jesus!
It’s hard to tell how much you will be taxed on your 401k because it depends on your income & tax laws at the time you plan to withdraw it.

The 25x is not a hard number because we have no idea how the market will perform moving forward. Same with taxes, so I would just add your 401k and Roth IRA balances and remember that it is a rough estimate.

2 Likes
#3

Thank you so much Vivi.

#4

Of course! Hope that helped!