37.5M Adjustment Recommendations
Currently renting - looking to purchase with Fiancé. Fiancé and I plan to keep our retirement plans separate while splitting everything else. What I pay now on rent will be equivalent to my share of the mortgage with a few extra hundred a month as a buffer.
Car Loan - 14K at 4% for 4 years. I kept my old car for 15 years and it was falling apart after 180k miles. I’ll try to do the same for this one.
Brokerage ~130k where ~80k will be used for a down payment.
Retirement accounts ~ 425k total
35k in pension forecasted lump sum payout of 270k at 55.
~120k in Roth 401k.
~17k in HSA.
~253k in Trad 401k.
Salary ~ 170k with 4.8% company match. I add 4k to HSA and 20k to Roth 401k. Company adds ~8K to Trad 401k.
I’m in Illinois so there is a flat 5% income tax. My understanding is Roth 401k contributions are state taxed while traditional contributions are not taxed. I believe Trad 401k to Roth 401k conversions are not state taxed.
Should I change my paycheck contributions to Trad and do yearly lump sum conversions from Trad 401k to Roth 401k to avoid state tax?
Looking to gain insights so any recommendations are welcome. Looking to be FI at 55 years old where work becomes a choice.
Thank you in advanced.
Edit: Weddings in 3 weeks.