I’ll try and keep it short- I’ve been spending the past few months trying to get my financial house in order and set up a boring boglehead style retirement strategy. My particular situation makes this confusing and I’m looking for any suggestions. Over 45yo / Married w 2 children/ Combined yrly income of about 350k and I live in a very HCOL city, so with childcare and shelter, we’re pretty comfortable and have some extra $ each month.
Firstly, I’m vested into a pension plan with my union that says I can expect to be getting about 2k per month when I retire. Not enough to live on in 20 years where I live.
Secondly, I had a small non-active rollover IRA that I just reactivated, maxed out and invested in broad market funds through fidelity.
I’ve also just set up two 529s for my kids that I put money in each month.
So, here I am with only a small pension and an underfunded (newly) maxed out RolloverIRA. So now I’m looking for additional options to supplement my retirement to make up for the lost time. I talked with a fidelity advisor and he pointed out that I really don’t have many options. Because I’m considered a “high income earner” (even though living in this city + childcare bleeds me dry) ..with an over 250k income, I am not allowed to even set up a personal 401k, Roth, SEP IRA, or any other tax advantaged vehicle.
So what then are my options? How does one strategize a retirement when all the tax advantaged vehicles are for >200k income earners? Am I stuck with just a small pension, social security, and whatever this Rollover IRA makes over the next 20 years? Is the stock market ETF my only safe-ish option to put money into and hope I make up lost investment time?
TLDR: Small pension + recently started Rollover IRA. What other catch-up retirement investment options are there for some one who makes over the 250k per year limit to make up for not getting started earlier?
Ty
Submitted August 23, 2023 at 03:37AM by anotherhumanperson https://ift.tt/FKzprYa
