Please forgive me if this question has been answered already but I'm having a hard time finding responses to my situation.
I'm 30 years old and currently live in New York City (taxes about 7% state and 3.6% city). I'm in the 28% tax bracket and make too much now to contribute to my Roth IRA. My company offers a 401k without matching but with a decent selection (Vanguard Index funds, etc.) of investment options. I can save about 2k a month after taxes or more with a 401k + after tax investing combination.
My question is, what should I do?
Without the match the 401k seems a bit suspect. I understand the tax deferral, but I'm worried that taxes may actually go up by the time I retire. They seem relatively cheap now and I'm worried Social Security costs may push taxes higher. Conversely, I may live in a lower tax state (almost any, I'd guess) at retirement. There may be a major shift to taxes (national sales tax, flat tax, etc) as well.
Any thoughts would be greatly appreciated and please correct me if I'm wrong on any of the information above.
Take care,
Seth