Wife and I are early 30s, Bay Area tech salaries. After taxes, deductions, and 401k maxed out, we take home about $400k split between cash and RSUs. Our PITI is about $127k a year, and we seem to live on $60k a year for other regular expenses. We have a three month emergency fund in a HYSA and about $300k in a taxable brokerage ETFs/company stock we could tap if needed. No debt beyond mortgage.
I am looking into maximizing retirement accounts now. Is it as simple for us each year as maxing out ESPP ($25k), backdoor Roth of $14k total, and then maximizing Mega backdoor which is about $68k total (We max 401k and employer match is 50%)?
Doing all this math leaves us with about $100k a year to throw into taxable brokerage or save for bigger purchases. I just feel like I am missing something here because it seems like we should have tons of money, but doesn't feel that way for us month to month. Do most people sell RSUs on vest to fund tax advantaged accounts? I think if we both maxed out these retirement accounts per paycheck we'd be left with very little month to month. Or do people sell RSUs and use that cash to fund monthly expenses?
- Takehome HHI: 400,000
- ESPP 25,000
- Backdoor Roth 14,000 + 6,000 in tax
- MBDR 68,000
- PITI 127,000
Living expenses 60000
Leftover: $100,000